🏥 HDHP with HSA or PPO?

Choosing between a high-deductible health plan (HDHP) and a PPO often comes down to your expected medical expenses versus guaranteed premium costs. This calculator estimates your all-in annual cost for both options by factoring in premiums, deductibles, employer seed money, and the tax benefits of a Health Savings Account (HSA). Compare total out-of-pocket costs to see which plan saves more.

The HDHP generally wins if you have low expected care usage, a meaningful premium gap, or generous employer HSA seed money. For 2026, the IRS defines a self-only HDHP as having a minimum $1,700 deductible.

You can contribute up to $4,400 to an HSA for a triple tax advantage: pre-tax contributions, tax-free growth, and tax-free qualified withdrawals.

The PPO is typically better for high predictable usage, frequent specialist visits, or when hitting the HDHP deductible every year erases your premium savings.

This calculator simplifies the math by capping care costs at the deductible, ignoring coinsurance and out-of-pocket maximums. We also exclude network and copay differences, investment growth of HSA balances, and mid-year plan changes.

Estimate your expected medical costs for the year to see which deductible threshold you might hit. Your marginal tax rate determines the income tax savings generated by pre-tax HSA contributions.

For further related reading, check out:

• Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service
• High Deductible Health Plan (HDHP) - Glossary