Comprehensive Guide
Learn more in our Insurance Guide.
How it works
health plan comparison tool takes your inputs and produces plan a: total annual cost, plan b: total annual cost, lower cost plan, annual savings with better plan. Compare health insurance plans side by side — premium, deductible, out-of-pocket max, and true annual cost. You provide 7 inputs: Plan A: monthly premium (currency, in dollars) (default: 400 dollars); Plan A: annual deductible (currency, in dollars) (default: 3000 dollars); Plan A: out-of-pocket max (currency, in dollars) (default: 8000 dollars); Plan B: monthly premium (currency, in dollars) (default: 250 dollars); Plan B: annual deductible (currency, in dollars) (default: 6000 dollars); Plan B: out-of-pocket max (currency, in dollars) (default: 12000 dollars); Expected annual medical spending (currency, in dollars) (default: 3000 dollars). The calculator returns 4 outputs: Plan A: total annual cost (the primary result); Plan B: total annual cost (a secondary output); Lower cost plan (a secondary output); Annual savings with better plan (a secondary output). Insurance is the mathematics of rare but catastrophic events. The right coverage amount depends on your assets, income, dependents, and risk tolerance — not on rules of thumb. This tool computes the actual figures so you can compare premiums against the expected value of protection. The underlying formula: Total cost = (Premium × 12) + Min(Expected spending, OOP max) − Min(Deductible, Expected spending) With the default values, plan a: total annual cost is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Formula
Total cost = (Premium × 12) + Min(Expected spending, OOP max) − Min(Deductible, Expected spending)
Tips
- Healthy adults: HDHP + HSA usually wins (lower premiums, tax-advantaged savings).
- Chronic conditions: PPO or low-deductible plan usually wins (predictable costs).
- The OOP max caps your worst-case scenario — this is your true maximum risk.
- Compare plans based on YOUR expected spending, not list prices.
Frequently asked questions
What is the total cost of a health plan?
Total annual cost = (Monthly premium × 12) + your out-of-pocket costs (deductible, copays, coinsurance) up to the out-of-pocket maximum. The plan with the lowest total cost at your expected spending level is the best deal.
Should I choose HDHP or PPO?
HDHP if you are healthy and can save the premium difference in an HSA. PPO if you have ongoing medical needs or want predictable costs. HDHP + HSA has a tax advantage that often makes it the better choice for healthy individuals.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.