LEXINGTON, Ky. — Many Kentuckians are discovering the challenges of high-deductible health plans after choosing lower-cost insurance options, according to coverage from Kentucky Health News.

An elementary school teacher who opted for a low-priced plan quickly realized she did not fully understand the financial implications for her family. "Once I got the insurance card, I compared our old plan to our new plan, and that's when I really got worried, because I didn't really understand what a deductible was," the educator said.

High-deductible health plans, increasingly offered by employers and available through state exchanges, feature lower monthly premiums but require individuals to pay significantly higher costs before insurance coverage begins. Health Savings Accounts, or HSAs, allow individuals to set aside money on a pre-tax basis to pay for qualified medical expenses, providing one strategy to manage these costs.

In 2026, all Bronze and Catastrophic health plans are eligible for Health Savings Accounts, and enrollment in these accounts has expanded as federal subsidies have changed. By using untaxed dollars in a Health Savings Account to pay for deductibles, copayments, coinsurance, and some other expenses, individuals may be able to lower their overall health care costs.

For Kentucky school employees, the LivingWell High Deductible Health Plan became a new option in 2025, described as catastrophic-type coverage. Out-of-pocket maximums in Kentucky Employee Health Plan options range from $3,150 for singles and $6,050 for families in certain plans to $8,300 for singles and $16,650 for families in the high-deductible plan.

Experts recommend several strategies for maximizing these plans. Health Savings Account balances roll over year to year, allowing individuals to build up amounts to pay for health care items and services needed later. In 2026, individuals can contribute up to $4,400 to an HSA, or $8,750 for family plans.

Additionally, all marketplace plans must cover certain preventive services at no cost when provided in-network, including routine immunizations and cancer screenings. Healthcare professionals also recommend comparing costs across providers and scheduling non-emergency care strategically to manage out-of-pocket spending.