High-deductible vs PPO calculator.

Premium + expected medical cost + plan rules = total annual cost. The calc compares two plans side-by-side and factors in your HSA tax savings on the HDHP side.

Calculator

Plan A vs Plan B annual cost.

Expected medical cost this year ($)

Your best guess: last year's total + any planned procedures.

Plan A (HDHP / HSA-eligible)

Annual premium ($) Annual deductible ($) Coinsurance after deductible (%) Annual OOP max ($) HSA contribution ($) Combined tax bracket (%)

Federal + state + FICA (if payroll). 22% + 5% + 7.65% ≈ 35% for a typical middle-income payroll contributor.

Plan B (PPO / non-HDHP)

Annual premium ($) Annual deductible ($) Coinsurance after deductible (%) Annual OOP max ($)

PPO is not HSA-eligible — no tax savings on contributions.

How the comparison works

For each plan, the calc computes:

Premium — the fixed annual cost you pay no matter what.
Out-of-pocket on expected medical — full price up to the deductible, then coinsurance %, capped at OOP max. (Same rules as the OOP calculator.)
HSA tax savings (HDHP only) — contribution × your combined tax bracket. This is real money in your pocket the HDHP gives you and the PPO can't.

Total annual cost = premium + OOP - HSA tax savings.

Rule of thumb

HDHPs win when (a) you're healthy enough to keep expected medical cost below the deductible most years, (b) you can afford to maximize the HSA contribution and let it compound, and (c) your tax bracket is high enough that the HSA savings offset the lower premium subsidy. PPOs win when you have predictable high medical cost (chronic conditions, planned surgeries, pregnancy in the year).

What this calc doesn't model

Employer HSA contributions (add to "HSA contribution" if your employer matches or seeds an account).
Variable copays vs deductible-then-coinsurance plans (most modern PPOs use deductible+coinsurance, not copays).
Multi-year HSA compounding — see the HSA tax calculator for invested growth.
Family coverage with one high-cost member — family OOP max applies, but the calc only takes the plan's family max if that's what you enter.

FAQ

Common questions.

Why does the calc favor the HDHP at low medical cost?

Because the HDHP premium is lower and you pocket the HSA tax savings without ever spending into the deductible. The crossover point is usually where your expected medical cost equals the HDHP deductible plus a coinsurance buffer.

What combined tax bracket should I use?

Federal marginal rate + state income tax rate + 7.65% FICA (if HSA is payroll-deducted). Typical middle-income: 22% fed + 5% state + 7.65% FICA = ~35%. High earners in CA/NY can hit 40%+.

What if my employer pays my premium?

Set the premium to your share only (the part deducted from your paycheck). Employer contribution doesn't enter the calc — that's value you get regardless of which plan.

Should I pick the cheaper plan?

Usually, but consider: risk tolerance (HDHP exposes you to higher worst-case cost in a year you blow past the deductible), cash flow (can you afford the deductible if a $5,000 surprise hits), and HSA discipline (HDHP only wins long-term if you actually contribute to and invest the HSA).