HDHP with HSA vs. PPO Plan Calculator

This tool is designed to help you compare a High Deductible Health Plan (HDHP) combined with a Health Savings Account (HSA) to a PPO plan with no HSA. By using the HDHP/HSA combination, you can often realize significant savings on your medical plan premiums and receive tax savings on your HSA contribution. Use this calculator to determine your potential savings.

The illustration below is using HDHP 1 and PPO 1 plan features, however, you may change any of these costs to match the medical plans you would like to compare. Note: Under the HDHP, the calculator is using estimated fees of $120 per doctor's office visit and $42 per prescription and may not represent actual costs.

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Definitions

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
Use the table below to help you choose the appropriate federal marginal income tax rate.

Filing Status and Income Tax Rates 2013
Tax rateMarried filing jointly
or qualified widow(er)
SingleHead of householdMarried filing separately
10% $0 - 17,850 $0 - 8,925 $0 - $12,750 $0 - 8,925
15% $17,850 - 72.500 $8,926 - 36,250 $12,751 - 48,600 $8,926 - 36,250
25% $72,501 - 146,400 $36,251 - 87,850 $48,601 - 125,450 $36,251 - 73,200
28% $146,401 - 223,050 $87,851 - 183,250 $125,451 - 203,150 $73,201 - 111,525
33% $223,051 - 398,350 $183,251 - 398,350 $203,151 - 398,350 $111,526 - 199,175
35% $398,351 - 450,000 $398,351 - 400,000 $388,351 - 425,000 $199,176 - 225,000
39.6% over $450,000 over $400,000 over $425,000 over $225,000
Source: http://taxes.about.com/od/Federal-Income-Taxes/qt/Tax-Rates-For-The-2012-Tax-Year.htm

Monthly medical premium
Monthly premium for your medical plan options.

Annual deductible
The amount you must pay in a calendar year before your medical plan starts to pay for covered medical expenses.

Annual out-of-pocket maximum
The maximum dollar amount you pay in a calendar year for covered medical expenses. Once you meet the out-of-pocket maximum, the plan will generally pay for covered services at 100% for the remainder of the calendar year.

Co–pay for doctor visits and prescriptions
The amount you pay for each doctor visit and prescription.

Co–insurance
Percentage of your covered expenses that you pay under the medical plan after you meet the annual deductible.

Other expenses
Any other expenses that would normally be covered by your medical plan.

HSA Contribution
The amount you expect to contribute to an HSA per year. For 2014, the maximum contribution amounts to an HSA are $3,300 for employee only coverage and $6,550 for all other coverage levels.

HSA current balance
Total amount you have in an existing HSA. If you do not have an HSA at this time, the balance would be $0.