Total Estimated Healthcare Expenses Calculator
Worksheet #1: Costs and Savings
| Cost of premiums and out-of-pocket expenses in Previous Year
(Fees up to deductibles, co-pays, uncovered expenses, and medication)
|
Total A _____ |
| Estimated Total for High-Deductible Insurance Premiums in New Year plus Total of Deductible Under Insurance Policy in New Year |
Total B _____ |
| Subtract “B” from “A” to get estimated cost savings for new plan, in New Year |
Total C _____ |
How Much Will an HSA Cost?
To determine if HSAs are right for you, calculate exactly what health care coverage costs you today. Reducing that cost on a monthly or yearly schedule is your goal.
If your employer paid for only part of your health insurance premiums, the amount your boss took out of your paycheck for your share of the premiums will be listed as a deduction on your W-2 form for the last tax year. Put that down on the Worksheet #2 on the premium cost line.
If you left or lost a job, and have been paying a COBRA premium for continuation of your health insurance coverage, put that down as a premium cost on your worksheet.
Now, go through your checkbook, and add up what you paid out-of-pocket for doctor bills, dentist care, and the like. Your credit card statements will show you where you paid for drugstore prescriptions and over-the-counter medications. Think about whether you purchased new eyeglasses, or installed a treadmill at home on the advice of your doctor.
You should now have two numbers on your worksheet. One number is the amount of money you personally paid in health insurance coverage premiums, for you and for your family. The other number is the amount you paid out-of-pocket for medical care throughout the year, for yourself (and if applicable) for your family.
Whatever your deductible is, add that figure to Worksheet #1.
Total up what you paid last year (A) and the maximum of what you might expect to pay next year (B).
Subtract (B) from (A). If the result (C) is less than (A), congratulations! You’ve just demonstrated how to save your dollars on health care, using the HSA program.
If (C) is a bigger number than (A), it may look like an HSA program would cost you more. But remember, this is the worst-case scenario. It assumes you’ll have serious medical needs in the next year. |
