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To help understand how HSAs can work for you, we have created the table below based on a family with three children:
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Traditional PPO Health 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 |
Annual 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 Expenditure |
$9,000 |
$9,500 |
Medical and dental expensesnot 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 |
Annual Savings With HSA Health Plan: $3,000 + $1,650 In
Tax Benefits!!
NOTE: If the same family did not have any medical expenses during the year, their savings would be 50% over the
Traditional Health Plan, or $4,500 + $1,650 in tax benefits annually.
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