Health Savings Account (HSA) vs. Traditional Health Plan

This tool is designed to help you compare a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to a traditional health plan. By using an HDHP/HSA solution, you can often realize significant savings on your insurance premiums and receive a deduction on your income taxes. Use this calculator to determine the possible savings.

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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 2012
Tax rateMarried filing jointly
or qualified widow(er)
SingleHead of householdMarried filing separately
10% $0 - 17,400 $0 - 8,700 $0 - $12,400 $0 - 8,700
15% $17,400 - 70,700 $8,700 - 35,350 $12,400 - 47,350 $8,700 - 35,350
25% $70,700 - 142,700 $35,350 - 85,650 $47,350 - 122,300 $35,350 - 71,350
28% $142,700 - 217,450 $85,650 - 178,650 $122,300 - 198,050 $71,350 - 108,725
33% $217,450 - 388,350 $178,650 - 388,350 $198,050 - 388,350 $108,725 - 194,175
35% over $388,350 over $388,350 over $388,350 over $194,175
Source: Revenue Procedure 2011-52

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 2012, for an HDHP, the minimum deductible amount is $1,200 for self-only coverage and $2,400 for family coverage. This is unchanged from 2011.

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. In 2012, for an HDHP, the highest annual out-of-pocket expense allowed is $6,050 for self only coverage and $12,100 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.

The percentage of your healthcare costs that your insurance will cover after your costs exceed your annual deductible. You are assumed to continue to pay this percentage of your healthcare 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 2012, the maximum contribution to an HSA is $3,100 for self-only coverage and $6,250 for family coverage.

HSA current balance
Total amount you have in an existing HSA account. If you do not have an HSA plan at this time this amount should be $0.