When does it make financial sense to choose a High Deductible Health Plan (HDHP) over a traditional low-deductible plan?

The HDHP vs. traditional plan decision comes down to a break-even analysis. Calculate the annual premium difference between the two plans, then add the tax savings from HSA contributions (which effectively reduce the HDHP's true cost), and compare that total savings against the maximum additional out-of-pocket exposure you would face in a high-utilization year. For healthy, younger individuals who rarely use medical services, the HDHP often wins decisively. For those with chronic conditions or predictable high utilization, a lower-deductible plan may cost less overall.