HSAs & health costs
High-deductible with an HSA, or the traditional plan?
An HSA vs. traditional health plan calculator: clients enter premiums, deductibles, employer HSA money, expected medical costs, their contribution and tax rate, and see which plan costs less.
Included in Network. 14-day trial, cancel any time.
Is a high-deductible plan with an HSA cheaper than a traditional plan?
Add each plan's annual premiums and the medical costs you'd pay up to its deductible. For the HSA plan, subtract the employer's HSA contribution and the tax saved on your own contribution. The plan with the lower net cost wins for your expected usage; heavy medical users often favor traditional plans.
Open enrollment
Benefits packets present two or three plans with different premiums and deductibles. Employees want a quick, personal comparison before the enrollment window closes.
What the client types into a search box
“should I choose the HSA plan or the PPO”
How a client works through it
Enter HDHP details
Premium, deductible and employer HSA contribution.
Enter traditional plan details
Premium and deductible.
Enter expected costs
Medical spending expected this year.
Enter HSA contribution and rate
To calculate tax savings, then compare.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Premiums, deductibles, expected costs and tax rate show household health spending and income. High expected costs suggest the traditional plan; healthy, higher-income clients may benefit from HSA investing.
Net cost of each plan
HSA Plan Net Cost and Traditional Plan Net Cost are the totals. Lower-Cost Plan and Annual Savings show the difference. HSA Tax Savings shows the tax benefit of the client's own contribution.
Payroll HSA contributions also avoid FICA, which the calculator doesn't include, so the HSA advantage may be understated.
Results shown: HSA Plan Net Cost · Traditional Plan Net Cost · Annual Savings · Lower-Cost Plan · HSA Tax Savings.
Why benefits choices matter to tax firms
Plan choice affects HSA eligibility, deductions and cash flow. Firms that help clients choose show value beyond the return and often prevent HSA eligibility mistakes.
Business clients can share it with employees during enrollment.
Follow-ups this request opens
- Choose the plan for expected usage
- Set HSA contributions for the year
- Plan for out-of-pocket maximums
- Coordinate with FSA eligibility
What this calculator leaves out
- Assumes the plan pays 100% after the deductible.
- Copays, coinsurance and out-of-pocket maximums not modeled.
- FICA savings on payroll contributions not included.
- Network differences not considered.
Platform disclaimer shown under the calculator: Estimates only. A simplified comparison that assumes the plan pays 100% after the deductible; real plans have coinsurance, copays and out-of-pocket maximums. The HSA tax saving uses your marginal rate (payroll HSA contributions also skip 7.65% FICA, which is not counted here).
Compliance note for firms
Plan comparisons are educational. Insurance recommendations may require licensing; keep the tool neutral and focused on costs and taxes.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
2026 figures this page relies on
| Figure | Value | Tax year | Source |
|---|---|---|---|
| HSA limit, self-only coverage | $4,400 | 2026 | IRS Rev. Proc. 2025-19 |
| HSA limit, family coverage | $8,750 | 2026 | IRS Rev. Proc. 2025-19 |
| Employee FICA: Social Security / Medicare | 6.2% Social Security + 1.45% Medicare (7.65%) | 2026 | SSA and IRS |
The same values drive the calculator. Full list on the 2026 figures page.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Net plan cost
- The yearly total this calculator compares for each plan: annual premium plus what you pay out of pocket for your expected medical costs, minus any employer HSA contribution and, for the HDHP, the tax saved on your HSA contribution. The plan with the lower net cost is shown as the lower-cost plan.
- High-deductible health plan (HDHP)
- A health plan with a higher deductible that meets IRS requirements and makes you eligible to contribute to an HSA. It usually has lower premiums than a traditional plan, so it tends to cost less in years with low medical use and more in years when you spend heavily before reaching the deductible.
- Premium
- What you pay for the insurance itself, whether or not you use any care — often taken from each paycheck. Enter the annual amount you pay, not the employer’s share. Premiums are a fixed cost in this comparison; the difference in premiums is usually the starting advantage of the HDHP.
- Deductible
- The amount you pay for covered care each year before the plan starts paying. This calculator assumes the plan pays 100% after the deductible, so your out-of-pocket cost is the smaller of your expected medical costs and the deductible. Real plans usually add coinsurance and copays after that point.
- Expected medical costs
- Your estimate of the covered medical spending you will have this year, such as visits, tests and prescriptions, at the plan’s negotiated prices. It is the input that most often flips the result: low expected costs favor the HDHP, while costs well above its deductible can favor the traditional plan.
- Employer HSA contribution
- Money your employer puts into your HSA when you choose the HDHP. It directly offsets the HDHP’s cost in this comparison and is not taxed as income to you. It counts toward the annual HSA contribution limit together with your own contributions.
In our glossary: Health savings account · High-deductible health plan
HSA vs. Traditional Health Plan calculator: questions from firms and clients
What if I have big medical bills?
The traditional plan often wins for high users; test your expected costs.
Does it include coinsurance?
No, it assumes the plan pays fully after the deductible.
Are FICA savings included?
No. Payroll HSA contributions also avoid 6.2% Social Security + 1.45% Medicare (7.65%)2026 · SSA and IRS, so savings may be higher.
What are the HSA limits?
$4,4002026 · IRS Rev. Proc. 2025-19 self-only, $8,7502026 · IRS Rev. Proc. 2025-19 family for 2026.
Can I switch mid-year?
Usually only with a qualifying life event.
What if my employer funds the HSA?
Enter it; it reduces the HSA plan's net cost.
Do networks matter?
Yes, but the calculator compares costs only.
Which plan includes it?
Network. The three HSA calculators are the only tools on this site that Practitioner and Firm don't include. Network has a 14-day trial. See pricing.
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