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This tool is designed to help you compare an High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to a traditional health plan. By using 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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Definitions
- Annual prescriptions
- Number of prescriptions you expect to fill annually.
- Annual doctor visits
- Number of times you expect to visit the doctors 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 2008 |
| Tax rate | Married filing jointly
or Qualified Widow(er) | Single | Head of household | Married filing separately |
| 10% |
$0 - 16,050 |
$0 - 8,025 |
$0 - $11,450 |
$0 - 8,025 |
| 15% |
$16,051- 65,100 |
$8,026- 32,550 |
$11,451- 43,650 |
$8,026- 32,550 |
| 25% |
$65,101- 131,450 |
$32,551- 78,850 |
$43,651- 112,650 |
$32,551- 65,725 |
| 28% |
$131,451- 200,300 |
$78,851- 164,550 |
$112,651- 182,400
|
$65,726- 100,150 |
| 33% |
$200,301- 357,700 |
$164,551- 357,700 |
$182,401- 357,700 |
$100,151- 178,850 |
| 35% |
over $357,700 |
over $357,700 |
over $357,700 |
over $178,850 |
Source: http://www.irs.gov/pub/irs-drop/rp-07-66.pdf
- Monthly premium
- Monthly premuim 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 2008, for a HDHP, the minimum deductible amount is $1,100 for self-only coverage and $2,200 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. In 2008, for a HDHP, the highest annual out-of-pocket expense allowed is $5,600/individual coverage and $11,200/family coverage for 2008.
- Co–pay for doctor visits and prescriptions
- The fee you pay for each prescription and/or doctors 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 a HSA account are tax deductible and withdrawals for qualified medical expenses are not subject to income tax. For 2008, the maximum contribution to a HSA is $2,900 for self-only coverage and $5,800 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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