A high deductible health plan offers a much lower monthly premium payment in exchange for a higher annual deductible. A minimum deductible for an HDHP is $1,350 for an individual and $2,700 for a family, so you can expect to have a deductible of at least that amount if you are enrolled in a HDHP. However, HDHP out-of-pocket expenses are limited at $6,650 for an individual and $13,300 for a family.
To help offset the cost of a HDHP, you can open a health savings account (HSA). This type of account is only open to those enrolled in HDHPs and offers a tax-advantaged way to save for healthcare costs. While there are annual contribution limits, HSAs allow you to roll over your balance from year to year. You can also contribute to an HSA pre-tax, which is a big advantage.
If you have an excess, you should withdraw it. Otherwise, you are subject to a 6% excise tax on excess contributions.
