How it works
A plan with a low premium can still cost more over a year, and the reverse. For each plan, you pay for care up to the deductible, then your coinsurance share, until you reach the out-of-pocket maximum. Add twelve months of premiums. For a plan that qualifies for an HSA, subtract the money your employer puts in, which is yours, and the tax your own contributions save at your tax rate; the contributions themselves are savings, not a cost. In the example, the high-deductible plan costs $1,870 at $2,500 of care against $3,060 for the PPO, and the PPO only becomes cheaper above $18,250. The spreadsheet adds a fourth plan, an HRA credit and a printable comparison.