HSA vs. Traditional Health Plan Calculator
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.
Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Health Savings Account (HSA) vs. Traditional Health Plan
Health care expenses and income tax: |
Health savings account (HSA): |
Traditional Health Plan: |
An HDHP with an HSA could save you $242 per month |
Definitions
Health Savings Account (HSA)
An HSA is a tax-advantaged account established to pay for qualified medical expenses of an account holder who is covered under a high-deductible health plan. With money from this account, you pay for health care expenses until your deductible is met. Any unused funds are yours to retain in your HSA and accumulate towards your future health care expenses or your retirement.
In order to put money into an HSA you are required to have a High Deductible Health Plan (HDHP) in effect for either you or your family. A HDHP is simply health insurance that meets certain minimum deductible and maximum out-of-pocket expense requirements. This table shows the limits for HSA's in 2024.
| 2024 | 2023 | Change | |
|---|---|---|---|
| HSA Contribution Limit | Single: $4,150 Family: $8,300 | Single: $3,850 Family: $7,750 | Single: +$300 Family: +$550 |
| HSA catch-up contributions* | $1,000 | $1,000 | No change, not indexed to inflation |
| HDHP minimum deductible | Single: $1,600 Family: $3,200 | Single: $1,500 Family: $3,000 | Self-only: +$100 Family: +$200 |
| HDHP maximum out-of-pocket** | Single: $8,050 Family: $16,100 | Single: $7,500 Family: $15,000 | Single: +$550 Family: +$1100 |
*Catch-up contributions can be made anytime during the year in which the participant turns 55. **This includes deductible amount, co-payments and other non-premium payments. | |||
Please note, you are no longer eligible to make HSA contributions starting in the first month that you are eligible for and enrolled in Medicare Part A or B.
Source and complete details on HSAs you may wish review: About Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
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
Your estimated Federal marginal income tax rate. Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.
| Tax Rate | Married Filing Jointly or Qualified Widow(er) | Single | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 10% | $0 - $22,000 | $0 - $11,000 | $0 - $15,700 | $0 - $11,000 |
| 12% | $22,000 - $89,450 | $11,000 - $44,725 | $15,700 - $59,850 | $11,000 - $44,725 |
| 22% | $89,450 - $190,750 | $44,725 - $95,375 | $59,850 - $95,350 | $44,725 - $95,375 |
| 24% | $190,750 - $364,200 | $95,375 - $182,100 | $95,350 - $182,100 | $95,375 - $182,100 |
| 32% | $364,200 - $462,500 | $182,100 - $231,250 | $182,100 - $231,250 | $182,100 - $231,250 |
| 35% | $462,500 - $693,750 | $231,250 - $578,125 | $231,250 - $578,125 | $231,250 - $346,875 |
| 37% | Over $693,750 | Over $578,125 | Over $578,125 | Over $346,875 |
| *Caution: Do not use these tax rate schedules to figure 2022 taxes. Use only to figure 2023 estimates. Source: Rev. Proc. 2022-45 | ||||
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. The tool assumes that after this threshold has been reached that your insurance covers 100% of your expenses. In 2024, for a HDHP, the minimum deductible amount is $1,500 for self-only coverage and $3,000 for family coverage.
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. A HDHP must also have a maximum out-of-pocket expense per year. For 2024, the HSA out-of-pocket maximum is $7,500 for self only coverage and $15,000 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 health care costs that your insurance will cover after your costs exceed your annual deductible. You are assumed to continue to pay this percentage of your health care 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 2024, the maximum contribution to an HSA is $3,850 for self-only coverage and $7,750 for family coverage.
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