HDHP with an HSA vs. Traditional Plan Calculator
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Determining the best healthcare plan for your needs is a decision we all weigh at one point or another. High deductible health plans (HDHPs) with a health savings account (HSA) are becoming more popular as healthcare costs rise. While HDHPs require you to pay for more of your healthcare before your insurance kicks in, the tradeoff is lower monthly premiums. An HSA is a tax-free savings account that can be put toward medical expenses. The funds in your HSA roll over year-to-year, so you can use the tax-free money when you need it. Traditional healthcare plans might offer more comprehensive coverage and lower deductibles, however the monthly premium can be higher. Use our HDHP and HSA vs. a traditional plan calculator to compare the costs of different types of healthcare plans.
What is an HDHP?
An HDHP (high-deductible health plan) is a health insurance plan with lower monthly premiums and a higher deductible compared to traditional plans.
What is an HSA?
An HSA (health savings account) is a tax-free savings account that can be used for qualified medical expenses. If you have an HDHP, you can open an HSA to help pay for the cost of your healthcare.
How to Pick a Health Insurance Plan
Choosing a health insurance plan is not always straightforward. Most people get health insurance through an employer—however, you can also shop for a plan on the federal marketplace, HealthCare.gov. When comparing plans, you should review the summary of benefits and consider the amount and type of treatment you and/or your family have received in the past. If you’re young and healthy, an HDHP with an HSA could be a good fit. The drawback is that you’re responsible for all of your non preventative costs before your plan kicks in, so if you or your family make frequent doctor visits, the bills can pile up, and you may want to consider a traditional plan with a lower deductible.
Next Steps
Fifth Third can help you open an HSA to start saving and paying for current and future healthcare costs. Learn more about our Health Savings Accounts. Questions? Call us at 1-866-350-5353.
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