Which Is Better, Comprehensive Plan Or High-Deductible Plan With H-S-A?

Which Is Better, Comprehensive Plan Or High-Deductible Plan With HSA?

Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003. HSAs are a form of medical savings account that must be accompanied by a high-deductible health insurance plan. HSAs allow individuals/employers to set aside money on a pre-tax or tax-deductible basis and then withdraw the money tax-free to pay qualifying medical expenses. Use this calculator to help compare a traditional, low-deductible health plan to a high-deductible health plan accompanied by an HSA to cover out-of-pocket expenses.

Comprehensive Health Plan
Deductible
Coinsurance
Maximum annual out-of-pocket (OOP)
Monthly insurance premium
High-Deductible Health Plan with HSA
Deductible
Coinsurance after deductible is met
Maximum annual out-of-pocket (OOP)
Monthly insurance premium
Other Assumptions
Anticipated yearly medical expenses (incurred by one individual)
Marginal tax rate (state/federal plus 7.65% SS/Medicare)
Plan type

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