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HDHP/HSA vs. traditional health plan calculator

To experience the savings and investment potential of a health savings account (HSA), you must participate in an HSA-eligible high-deductible health plan (HDHP).

What are the potential benefits of an HDHP/HSA?

  • The ability to participate in an HSA and experience its tax savings and investment potential.
  • HDHPs typically have lower premiums than traditional health plans.
  • To offset the higher deductibles of an HDHP, your employer might offer HSA contributions or matches.

Which plan is right for you?

Use our calculator to see how an HDHP and HSA compare versus a traditional health plan.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.



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Health Savings Account (HSA) vs. Traditional Health Plan
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**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Definitions

Health Savings Account (HSA)

An HSA is a tax-advantaged account established to pay for qualified medical expenses of an account holder who is covered under a high-deductible health plan. With money from this account, you pay for health care expenses until your deductible is met. Any unused funds are yours to retain in your HSA and accumulate towards your future health care expenses or your retirement.

In order to put money into an HSA you are required to have a High Deductible Health Plan (HDHP) in effect for either you or your family. A HDHP is simply health insurance that meets certain minimum deductible and maximum out-of-pocket expense requirements. Visit our blog to view the 2023 and 2024 contribution limits.

Please note, you are no longer eligible to make HSA contributions starting in the first month that you are eligible for and enrolled in Medicare Part A or B.

For complete details on HSAs you may wish to visit the U.S. Treasury at U.S. Treasury Health Savings Accounts.

Annual prescriptions

Number of prescriptions you expect to fill annually.

Annual doctor visits

Number of times you expect to visit the doctor's office annually.

Marginal income tax rate

Your marginal tax rate is used to calculate your potential tax savings. We assume that all contributions receive a tax deduction at the tax rate you enter here. Utilize the IRS tax rate to assist you in estimating your federal tax rate. See irs.gov for more information.

Monthly premium

Monthly premium for your proposed health insurance options.

Annual deductible

Annual deductible that you are required to pay before your health insurance begins coverage. We assume that after this threshold has been reached that your insurance covers 100% of your expenses. In 2024, for a HDHP, the minimum deductible amount is $1,600 for self-only coverage and $3,200 for family coverage.

Maximum annual out-of-pocket

Maximum out-of-pocket in a given year for your health insurance. This is the maximum total expense that you could incur in a given year with your proposed coverage. A HDHP must also have a maximum out-of-pocket expense per year. For 2024, the HDHP out-of-pocket maximum is $8,050 for self only coverage and $16,100 for family coverage.

Co-pay for doctor visits and prescriptions

The fee you pay for each prescription and/or doctor's visit. These payments do not count toward your annual deductible or your maximum out of pocket expense.

Co-insurance

The percentage of your health care costs that your insurance will cover after your costs exceed your annual deductible. You are assumed to continue to pay this percentage of your health care costs until you reach your annual maximum out of pocket expense.

Other expenses

Any other expenses that would normally be covered by your health insurance. This would include lab fees and services other than prescriptions and doctor visits. Don't include medical expenses not normally covered by your insurance such as some elective surgery, contact lens solution or over the counter medications.

HSA contributions

Total you expect to contribute to an HSA account per year. All contributions to an HSA account are tax-deductible and withdrawals for qualified medical expenses are not subject to income tax. For 2024, the maximum contribution to an HSA is $4,150 for self-only coverage and $8,300 for family coverage. This calculator doesn't take catch-up contributions into account when calculating your maximum annual contribution.

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