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Open-Enrollment Plan Comparison Calculator

The premium is only half the price of a health plan. Enter both plans side by side — premiums, deductibles, expected care, and your HSA details — and see the true yearly cost, with the employer seed money and tax savings counted where they belong.

Which plan is actually cheaper for your year?

Same medical spending, two plans — the honest total, premiums included.

Expected medical spending $

Your year's full billed care — same number for both plans.

Marginal tax bracket

HDHP — annual premium $

HDHP — deductible $

HDHP — coinsurance %

HDHP — OOP max $

Employer HSA seed $

My HSA contribution $

PPO — annual premium $

PPO — deductible $

PPO — coinsurance %

PPO — OOP max $

Try:

High-deductible + HSA wins$5,550Estimated total yearly cost, premiums included — by $2,250 a year

High-deductible + HSA

Annual premium$3,600

Your share of expected care$3,500

HSA tax savings (22%)-$550

Employer HSA seed-$1,000

Effective yearly cost$5,550

Traditional plan

Annual premium$6,500

Your share of expected care$1,300

Effective yearly cost$7,800

High-deductible + HSAWinner

Premium $3,600 + care $3,500 · $1,550 in HSA benefits applied$5,550 effective / yr

Traditional planPricier

Premium $6,500 + care $1,300$7,800 effective / yr

bars to the same scale

The high-deductible plan wins by $2,250. That is a $2,900 premium gap plus $1,550 in employer seed money and HSA tax savings, against $3,500 of expected care costs. The HSA plan wins healthy years and breaks roughly even in bad ones — try the big-year scenario to see your worst case.

How it works: your share of care is the full bill under the deductible, then your coinsurance share above it, capped at the out-of-pocket maximum. The high-deductible plan's effective cost then subtracts your HSA tax savings (your contribution times your marginal bracket) and the employer seed money — both are real dollars back in your pocket. The winner is the lower effective yearly cost.

How open-enrollment comparison math works

Most people pick a health plan by comparing premiums — the number that shows up on every paycheck. But the premium is only the entry fee. A cheaper premium with a high deductible can cost you far more in a year with surgery, while an expensive premium with a low deductible can pay for itself if you use care steadily. The comparison that matters is premium + your share of the care, minus any HSA benefits.

The formula

your care share = full bill up to the deductible, then coinsurance % above it, capped at the OOP max · effective cost = premium + your care share − HSA tax savings − employer seed · HSA tax savings = your contribution × marginal tax bracket

Worked example: $3,600 HDHP vs $6,500 PPO, $3,500 of care

The HDHP has a $3,500 deductible, so the full $3,500 of care lands on you: 3,500. The PPO's $750 deductible leaves $2,750, of which 20% coinsurance is $550 — care share = 750 + 550 = $1,300.

HSA tax savings = 2,500 × 0.22 = $550. HDHP effective cost = 3,600 + 3,500 − 550 − 1,000 = $5,550. PPO effective cost = 6,500 + 1,300 = $7,800.

The HDHP wins by $2,250 — the $2,900 premium gap and $1,550 of HSA benefits beat the PPO's cheaper care share. In a $30,000 medical year the gap shrinks but the HDHP still wins ($9,050 vs $10,500) thanks to its premium edge and seed money.

Where this comes in handy

Open enrollment: the once-a-year decision this comparison was built for — run it with your real plan numbers.
Low-use years: see how much a healthy year saves on the HDHP, and why the premium gap usually dominates.
Planned procedures: run a big medical year to find your true worst case before you need it.
Employer seed math: watch the ranking flip once free HSA money is counted honestly.
Job changes: compare your current plan against a new employer's options on equal footing.
Family coverage: re-run with family deductibles and expected spending to test the family-tier math.

For the full walkthrough — the four numbers that matter, the HSA triple tax break, the worst-case test, and the copay caveat — see the guide How to compare open-enrollment health plans.

Open-enrollment comparison — frequently asked questions

How do I estimate my medical spending for next year?

Average your last two or three years of actual spending — your insurer's explanation of benefits shows the full billed amounts, not what you paid. Then add any care you already know is coming: a planned surgery, a birth, orthodontics, new prescriptions. Run the calculator three times: last year's number, your best guess, and a big year — that range tells you more than any single estimate.

Is the HSA tax break really worth counting?

Yes — it is the triple tax advantage working. Contributions go in pre-tax, growth is tax-free, and withdrawals for medical expenses are tax-free. A $2,500 contribution at the 22% bracket is $550 a year back, and employer seed money is simply free money. Leave both out of the comparison and the HDHP looks hundreds of dollars worse than it is.

What if I almost never go to the doctor?

Then the high-deductible plan usually wins by a mile. The premium gap alone — often $2,000 to $3,000 a year — dwarfs the small care share of a healthy year, and the employer seed money plus tax savings stack on top. The HDHP's risk is a surprise big year, which is what the out-of-pocket maximum exists to cap.

What if I have a chronic condition or regular prescriptions?

Run the numbers honestly instead of assuming the PPO wins. The PPO's low deductible helps, but its premium is guaranteed while your care costs are not. Where the PPO genuinely wins is steady moderate use: when your yearly care share on the HDHP would exceed the premium gap plus HSA benefits. Also check the prescription formulary — drug tiers differ between plans and can matter more than the deductible.

Should I compare the worst-case costs too?

Always. Worst case = annual premium + out-of-pocket maximum, no estimates needed. The HDHP's worst case is usually higher because both numbers tend to be larger there. Ask yourself which bad year you could actually absorb: if the HDHP worst case would break your savings but the PPO's wouldn't, the extra premium is insurance in the literal sense.

Do copays change the math?

They can. Many PPOs charge flat copays for office visits and drugs that don't count toward the deductible — great for predictability, but they mean your real care share differs from a pure deductible-plus-coinsurance model like this calculator's. If your PPO is copay-heavy, estimate your yearly copays separately and add them to the PPO's side.

Can I fund an HSA if I pick the traditional plan?

No — only a qualifying high-deductible plan lets you contribute to an HSA. One more rule that surprises people: a general-purpose health FSA through your employer disqualifies HSA contributions entirely for that year. A limited-purpose FSA (dental and vision only) stays compatible.