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.
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.
| 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 http://www.irs.gov
- 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.
- Co-insurance
- 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.
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