Below is a chart comparing a traditional plan to a high deductible health plan (HDHP) with an HSA. As a comparison, this family of three calculates funding their HSA with exact funds to cover their projected qualified medical expenses of $3,000. (Please note: these illustrations do not include employer funds; HSA costs would be reduced by employer contribution.)


  Traditional PPO Plan HSA Health Plan w/PPO
Deductible $500 x 3 = $1,500 $5,000 Family Deductible
Co-Insurance 80/20 - 5,000 x 2 = $2,000 None - 100% Coverage
Annaul Out of Pocket Maximum $3,500 + Co-pays = $4,500* $5,000
Monthly Premium $750 $375
Annual Insurance Cost $9,000 $4,500
Tax Free HSA Deposit $0 $5,000
Tax Savings @ 33% None $1,650
Total Expenditures $9,000 $9,500
Medical and dental expenses not covered by insurance $1,500 $1,500
TOTAL OUTLAY $10,500 $11,000
HSA account balance at end of year $0 $3,500
NET COST $10,500 $7,500

*JLBG Health Statistics