A high-deductible plan has lower premiums and an HSA. See which plan costs less for you.
This calculator compares a high-deductible health plan paired with an HSA against a traditional health plan, netting premiums, out-of-pocket costs, and the HSA's tax savings.
A high-deductible health plan (HDHP) has lower premiums but you pay more out of pocket before coverage kicks in. In exchange, it lets you fund a Health Savings Account with pre-tax dollars, which lowers the effective cost. A traditional plan costs more in premium but less out of pocket. The right choice depends on your expected medical spending.
The HSA is what tips many comparisons toward the HDHP. Contributions are pre-tax, growth is tax-free, and withdrawals for medical costs are tax-free, a rare triple tax benefit. If you're healthy and can invest the HSA rather than spend it, the HDHP often wins over time. If you expect heavy medical use, the traditional plan may cost less.
Often for healthy people who can invest the HSA, thanks to lower premiums and the HSA's triple tax benefit. Heavy medical users may pay less with a traditional plan.
Contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical costs are tax-free, the only account with all three benefits.
People who expect significant medical costs, where the lower out-of-pocket exposure outweighs the HDHP's premium savings and HSA benefit.
See the exact formula and a worked example on our methodology page.