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MEDI CAL , CONT I NUED
H D H P E X A M P L E – I N D I V I D U A L C O V E R A G E
Lisa is a healthy 35-year old. She has an annual well-woman exam and takes a maintenance
medication daily; apart from that, she has little or no contact with her doctor for the rest of the year.
She is considering enrolling in the HDHP plan to take advantage of the low paycheck deductions
and the tax savings benefit of the HSA (we’ll learn more about this later on in this overview).
L I S A ’ S H S A P L A N
Lisa knows that if she enrolls in the HDHP plan that all services are subject to her $2,250
deductible except for Preventive Services as defined by the medical plan. She is also planning on
contributing $20 per paycheck (pre-tax) into her HSA account which will total $1,000 for the year.
She can use this money for any out of pocket costs and any balance in the account is hers to keep
for the future. She will save $200 in payroll taxes by making the HSA contribution.
THC
PPO
THC
HDHP
Plan Deductible
$750
$2,250
Medical services received:
•
Preventive Well-woman exam and lab tests (100% covered)
$0
$0
•
Doctor’s visit for flu
$25
$100
•
Prescription drugs – Preferred Brand (cost $125/month)
$360
$1,500
Total Medical Care Cost
$385
$1,600
Lisa’s annual medical plan payroll deductions
$2,925
$1,308
Lisa’s contribution to HSA is $1,000 resulting in tax savings
$0
($200)
Lisa’ total annual health care cost (including payroll deductions)
$3,310
$2,708
T H E V E R D I C T
By enrolling in the HDHP plan instead
of the PPO plan and contributing to her
HSA account – Lisa saved over $600!
Want to hurry and learn more about
HSA accounts? If so, jump to page 15!
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