A High Deductible Health Plan (HDHP) is one of the best ways to buy a cheap health insurance plan. That's because when you need health care, you pay the first couple of thousand dollars in expenses. HDHPs are sometimes referred to as catastrophic health insurance coverage because they only provide protection against major expenses after you've spend a high amount out-of-pocket. That amount you pay yourself is your deductible.

High deductible plans usually carry a minimum deductible of $1000 for an individual and $2000 for a family. The deductible generally applies to all expenses, including prescriptions and doctor office visits, but in some cases preventive care does not count toward meeting the deductible.

However, according to the Agency for Healthcare Research and Quality (AHRQ), most HDHPs will cover preventive services, such as routine office visits, before you have met your deductible.

Healthy individuals who don't regularly visit doctors except for emergencies might choose an HDHP to save money while still maintaining some coverage should they become seriously ill or require major surgery.

High Deductible Health Plans are required for those who want to open health savings accounts HSAs. Keeping a health savings account will allow you to cover health costs until you meet the deductible of an HDHP.

Once you've met the deductible, some companies will share health care costs with you (for example, you'll pay "coinsurance" of 10%-15%) until you reach a specific out-of-pocket expense cap. After that, they'll cover 100% of qualified health expenses.

Other companies will pay 100% of covered expenses once you meet the deductible without a coinsurance provision.