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MEDI CAL , CONT I NUED
H D H P E X A M P L E – F A M I L Y C O V E R A G E
Karl knows that all his services are subject to the $2,600/individual or $4,500/family deductible.
He is planning to make the IRS maximum contribution of $130 per paycheck ($6,750/year) into
his HSA account. He will use the money to pay for any out of pocket costs and any balance in the
account is his to keep for the future.
THC
PPO
THC
HDHP
Plan Deductible
$750/$1,500
$2,600/$4,500
Medical services received:
•
Two annual physicals and well-child exam
$0
$0
•
Three specialist office visits for Karl
$75
$300
•
Prescription drugs - Generic ($30/month)
$120
$360
•
Hospital and surgery charges: $14,500
Deductible remaining
$750
$1,940
Expenses remaining after deductible
$2,850
($13,750 x 20%)
+ $100 copay
$2,612
($12,560 x 20%)
+ $100 copay
Total Medical Care Cost
$3,795
$5,212
Karl’s annual medical plan payroll deductions
$11,329
$6,639
Karl’s contribution to HSA is $6,750 resulting in tax savings
$0
($1,350)
Karl’s total annual health care cost
$15,124
$10,501
T H E V E R D I C T
By enrolling in the PPO/HSA plan
instead of the PPO plan and
contributing to his HSA account – Karl
saved over $4,600!
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