Wednesday May 16th, 2012

Health Savings Account (HSA) vs. Traditional Health Plan Calculator

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 a 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.

Health Savings Account (HSA) vs. Traditional Health Plan

A HDHP with a HSA could save you TOTAL_MONTHLY_COST2 per month.

MSG_HSA_BALANCE Your unused HSA account balance is HSA_UNUSED_BALANCE for the year which rolls over to next year, tax-free (state taxes may vary).

**GRAPH**

&NBSP;	HDHP Qualified Plan	Traditional Health Plan
Input Summary
Annual prescriptions	ANNUAL_PRESCRIPTIONS	&NBSP;
Annual doctor visits	ANNUAL_DOCTOR_VISITS	&NBSP;
Marginal income tax rate	MARGINAL_INCOME_TAX_RATE	&NBSP;
Monthly premium	MONTHLY_PREMIUM1	MONTHLY_PREMIUM2
Annual deductible	ANNUAL_DEDUCTIBLE1	ANNUAL_DEDUCTIBLE2
Maximum annual out-of-pocket	MAXIMUM_ANNUAL_OUT_OF_POCKET1	MAXIMUM_ANNUAL_OUT_OF_POCKET2
Co-pay for prescriptions	CO_PAY1	CO_PAY2
Co-pay for doctor visits	CO_PAYDOC1	CO_PAYDOC2
Other expenses	OTHER_EXPENSE1	OTHER_EXPENSE2
Co-insurance	CO_INSURANCE1	CO_INSURANCE2
HSA Contributions	HSA_CONTRIBUTIONS1	HSA_CONTRIBUTIONS2
Current HSA Account Balance	HSA_CURRENT_BALANCE	&NBSP;

&NBSP;	HDHP Qualified Plan	Traditional Health Plan	Difference
Results Summary
Annual premium	ANNUAL_PREMIUM1	ANNUAL_PREMIUM2	ANNUAL_PREMIUM3
Estimated medical expenses	ESTIMATED_MEDICAL_EXPENSES1	ESTIMATED_MEDICAL_EXPENSES2	ESTIMATED_MEDICAL_EXPENSES3
Estimated HSA withdrawals	ESTIMATED_HSA_WITHDRAWALS1	ESTIMATED_HSA_WITHDRAWALS2	ESTIMATED_HSA_WITHDRAWALS3
Estimated HSA tax savings	ESTIMATED_HSA_TAX_SAVINGS1	ESTIMATED_HSA_TAX_SAVINGS2	ESTIMATED_HSA_TAX_SAVINGS3
Total annual cost	TOTAL_ANNUAL_COST1	TOTAL_ANNUAL_COST2	TOTAL_ANNUAL_COST3
Total monthly cost	TOTAL_MONTHLY_COST1	TOTAL_MONTHLY_COST2	TOTAL_MONTHLY_COST3
Unused HSA Account Balance*	HSA_UNUSED_BALANCE	$0	HSA_UNUSED_BALANCE

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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 2009 Caution: Do not use these tax rate schedules to figure 2008 taxes. Use only to figure 2009 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 16,700	$0 - 8,350	$0 - $11,950	$0 - 8,350
15%	$16,701- 67,900	$8,351- 33,950	$11,951- 45,500	$8,351- 33,950
25%	$67,901- 137,050	$33,951- 82,250	$45,501- 117,450	$33,951- 68,525
28%	$137,051- 208,850	$82,251- 171,550	$117,451- 190,200	$68,526- 104,425
33%	$208,851- 372,950	$171,551- 372,950	$190,200- 372,950	$104,425- 186,475
35%	over $372,950	over $372,950	over $372,950	over $186,475

Source: http://www.irs.gov/pub/irs-drop/rp-08-66.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 2009, for a HDHP, the minimum deductible amount is $1,150 for self-only coverage and $2,300 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 2009, for a HDHP, the highest annual out-of-pocket expense allowed is $5,800/individual coverage and $11,600/family coverage.

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 2009, the maximum contribution to a HSA is $3,000 for self-only coverage and $5,950 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.