HSA Potential Savings
How can switching from your traditional insurance plan to a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) save you money? Take a look at the chart below.
In this example, a family had a traditional health insurance policy with a $1000 deductible. This family switched to a HDHP with a $5150 deductible and then put $5150 into their HSA.
At the end of the year, they saved more than $600 and still had more than $2900 in their HSA to cover future medical expenses for a total savings of almost $3000 in one year.
|Coinsurance||80% / 20%||100%|
|Out-of-Pocket Costs to Cover Deductible||$1,400.00||NA|
|Out-of-Pocket Costs to Cover Coinsurance||$800.00||NA|
|HSA Qualified Expenses||NA||$2,200.00|
|Unused HSA Contribution (Assuming $5150 Contribution)||NA||$2,950.00|
|Savings: HSA Contribution Tax Reduction for Current Year||$5,150.00||$9,651.20|
|Multiply HSA contribution by tax rate to realize tax savings and||x.25||-($1287.50)|
|subtract from the HSA expense subtotal||$1,287.50||$8,363.70|
1Your HSA may also have some interest growth. Fees may reduce earnings.
The information provided in this page is not intended to be legal or tax advice. You should consult your attorney or tax advisor for information that relates to your specific circumstances.
Product descriptions herein do not take the place of required disclosures under federal and state regulations. Please contact us for disclosures appropriate to these accounts.”