HDHP vs. PPO: Which Is the Right Choice for You?

To pick the best health coverage, understand the differences between these two plans.

By Kailey Hagen – Updated Sep 15, 2025 at 12:33 PM | Fact-checked by Margo Winton Parodi

Key Points

HDHPs have higher deductibles but lower premiums than PPOs and allow HSA contributions.
PPOs offer lower deductibles and smaller provider networks than HDHPs.
Choosing between an HDHP and a PPO depends on your healthcare usage, financial situation, and network needs.

To find the right health coverage, you need to weigh the pros and cons of an HDHP vs. a PPO. The best choice for you depends on several factors, including your health, lifestyle, number of dependents, and financial situation.

Below, we'll look at all these factors to help you determine which type of insurance plan suits you.

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An infographic comparing the similarities and differences between HDHP and PPO plans. — Image source: The Motley Fool.

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Table by author.
Costs	HDHP	PPO
Annual premiums	$5,000	$7,500
Deductible	$4,500	$1,000

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Don't just base your choice on costs. Look into what each policy covers and make sure medications or treatments you or your family members need are covered. Compare several policies side by side to figure out which offers you the greatest value -- that is, the most coverage at the most reasonable price.

It takes some time, but it's the best way to make sure you find the best coverage for you.

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About the Author

Kailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning. Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.

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