Which of the following describes HDHPs?

High Deductible Health Plans (HDHPs) are characterized by having higher deductibles compared to traditional health plans, which is precisely what option B captures. These plans are designed to provide catastrophic coverage, meaning they typically cover essential health benefits after the deductible is met. The high deductible acts as a way to limit monthly premiums while giving consumers the opportunity to save for healthcare expenses using Health Savings Accounts (HSAs). HDHPs incentivize individuals to engage in cost-conscious healthcare decisions due to the higher out-of-pocket costs before insurance kicks in.

The other options do not accurately represent the features of HDHPs. Low deductibles and high premiums (as mentioned in option A) are not characteristics of HDHPs. Additionally, option C is misleading as HDHPs do require some financial contributions from employees, typically in the form of higher deductibles and premiums. Finally, while HDHPs do cover essential health services, they also include limits, particularly in terms of out-of-pocket maximums and coverage limitations, making option D inaccurate.