Health Savings Accounts (HSA) offer an opportunity for you to build tax-free savings to pay for current and future qualified medical expenses. Used in conjunction with a High Deductible Health Plan (HDHP) a high-deductible plan may cost less overall than making monthly premium payments to a traditional health plan and making co-payments when you require medical care. If you use the HSA/HDHP method, you will pay some of the initial medical costs out of your HSA, up until you meet your HDHP deductible. A traditional health plan would pay for most of those up front, after a more modest deductible. Which method is best for you depends on your medical care needs and the HSA/HDHP and Traditional Plan options available to you.
Health Savings Account or Traditional Health Plan?
Health Savings Account or Traditional Health Plan?
HDHP Qualified Plan Cost |
Traditional Plan Annual Cost |
|---|---|
| $ 4,040.50 | $ 6,080.00 |
Using a High Deductible Health Plan along with a Health Savings Account will save you $2,039.50 annually. You will also have $1,220.00 remaining in your HSA at the end of the year, which can be rolled over into the following year.
| Plan | Annual Cost |
|---|---|
| HDHP Qualified Plan | $ 4,040.50 |
| Traditional Health Plan | $ 6,080.00 |