Claims example – without HSA
The Johnson’s are 35 years old with 2 kids incurred $2,500 of claims and $500 in uncovered medical expenses in 2006.
Previous plan – $1000 deductible and 80/20 coinsurance
| Annual premium | $6000 |
| 2003 expenses | $1000 towards deductible |
| $300 Coinsurance | |
| $500 dental, eyeglasses | |
|
|
|
| Expenses total | $7800 |
| Tax savings | 0 |
|
|
|
| Total expenses | $7800 |
Claims example – with HSA
The Johnson’s are 35 years old with 2 kids incurred $2,500 of claims and $500 in uncovered medical expenses in 2006. The Johnsons are in the 28% tax bracket
HDHP/HSA $5000 deductible – no coinsurance
| Annual premium | $3600 |
| 2003 expenses | $2500 |
| Dental, eyeglasses | $500 |
|
|
|
| Expense total | $6600 |
| Tax savings* | -$840 |
|
|
|
| Total Expenses | $5760 |
*($3000 HSA eligible expenses x .28 = $840)