C2P = Compare 2 Plans, HSA qualified VS Non-HSA qualified

Below is a calculator that helps you compare the true annual cost of two health insurance plans.

Instructions:

1. Start by entering the monthly premiums for the two plans being compared in lines 2 & 3.

2. In lines 4 & 5 enter the annual first dollar wellness benefit for each plan. Almost all plans cover some type of wellness, but not first dollar. Leave the $0.00 in the cell if the plan only covers wellness after the deductible has been met. If you are comparing a copay plan and are unsure of the total dollar amount then enter $300.

3. Enter the total number of insureds on the policies being compared.

4. Enter your income tax bracket in percentage. Here is the 2008 US Tax Brackets for your convenience.

   The calculator is assuming the maximum allowable contribution, minus the $900 catch up provision for people over the age of 55. Here more information on Health Savings Accounts (HSA)

5. Enter the Total Annual Out Of Pocket Maximum (Family maximum deductible + family maximum coinsurance for the year) for the family / multiple insureds.

You probably noticed that we converted premiums from monthly to annual. This is because insurance companies calculate deductibles and out of pocket maximums on an annual bases. Therefore, the conversion is necessary for an accurate comparison.

Pay close attention to the yellow highlighted figures. First, "Best Case" tells you what your true cost of the plan would be if you had no claims except for well visits on your health insurance policy in a 12 month period of time. This takes your annual premium and subtracts first dollar wellness and federal income tax savings. Second, " Worst Case" is the dollar amount that you would have out of your pocket if all insureds met their total out of pocket maximum (deductibles + coinsurance maximums) for the 12 month period, plus the figures in the "Best Case" column.

No one can predict what, if any medical expenses they will have in the next 12 months. However, you can control taking advantage of 1) first dollar well coverage benefits 2) all tax benefits. This is an actual cash value to you.

Additional savings can be had from state income tax deductions (if any) and taking advantage of the federal catch up provisions for person over the age of 55. The premiums are also deductible on both plans for self employed taxpayers.

Assumptions:

1. That you will deposit the maximum contributions to your Health Savings Account. This is $2,900 for an individual and $5,800 if more than one person is insured on the policy. We did not assume a deposit of the $900 per person catch up provision for persons over the age of 55.

2. That all persons to be insured will actually use all of their first dollar wellness benefit.

3. That all providers are in network.

Please feel free to call us at 1-800-335-0639 if you need help, have questions, or comments.