HDHP vs PPO — What's the Difference?
HDHPs have lower premiums but higher deductibles and unlock HSA eligibility. PPOs have higher premiums but lower out-of-pocket costs when you use care.
| HDHP | PPO | |
|---|---|---|
| Monthly premium | Lower | Higher |
| Deductible (2026 minimum) | $1,650 individual / $3,300 family | Usually lower |
| HSA eligible | Yes | No |
| Referrals needed | Usually no | No |
| Out-of-network coverage | Depends on plan | Yes |
| Preventive care | Covered 100% before deductible (ACA) | Covered 100% (ACA) |
| Best for | Healthy, high earners wanting tax savings | Regular healthcare users, families |
| Risk if major illness | High upfront costs before deductible met | Lower upfront, higher monthly |
| Tax advantage | Triple tax-free HSA | None beyond pre-tax premiums |
Bottom line
HDHPs + HSA win if you're healthy and rarely use healthcare — you save on premiums and build tax-free savings. PPOs win if you have chronic conditions, take regular medications, or anticipate significant healthcare use.
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