Health Savings Account Evaluator - 2017 Calculator

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This calculator compares the costs of a traditional health plan to a qualified high deductible health plan together with a health savings account. The amount in the Net savings this year field indicates the difference between the two options.

A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses.

A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider.

Benefits of an HSA

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

High deductible health plan (HDHP)

Example

What will a couple save annually if they are considering adding an HSA to a plan set up as a High Deductible Healthcare Plan? In this example, the couple is expecting their first child late next year.

Note: The particular plan has a (3,000 individual / 6,000 family) deductible.

Field Traditional Plan HSA Plan
Plan coverage Family Family
Annual deductible $700.00 $2,100.00
Medical costs applied to annual deductible $700.00 $2,100.00
Co-payments and co-insurance after deductible is met $2,300.00 $2,900.00
Monthly taxpayer insurance premium $290.45 $102.60
Insurance premium exempt from FICA tax? Yes Yes
Insurance premium exempt from income tax? Yes Yes
Employer contribution to HSA $1,000
Taxpayer contribution to HSA (exempt from income tax) $2,100
Taxpayer contribution from a section 125 cafeteria plan? No
Federal tax rate 25.00% 25.00%
State tax rate 4.00% 4.00%
State tax deducted on federal return? Yes Yes

In this example, the couple will save $1,038.59 by using the HSA plan.

Note: The medical costs applied to the annual deductible cannot exceed the annual deductible.

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