Should I pick the high-deductible plan with an HSA or the PPO?
Compare a year on each plan, tax savings from the HSA included, and see the level of medical bills where the cheaper plan changes.
Who the plan coversSets the 2026 HSA and HDHP limits. The plan numbers below are examples, not a quote: replace them with your plan documents.
Your ageFrom 55 you may put $1,000 more into an HSA.
THE GAP BETWEEN THE PLANSPPO COSTS LESS
$155
At $4,000 of medical bills the PPO costs you $155 less over the year: $7,800 on the PPO against $7,955 on the HDHP, after $905 of tax saved on your own HSA dollars. The cheaper plan by level of care: the HDHP up to $2,775, the PPO from $2,775 to $17,753, the HDHP above $17,753.
PPO, all in
$7,800
HDHP, all in
$7,955
Plans cost the same at
$2,775–$17,753
Left in your HSA
$140
UNDERSTAND YOUR RESULT
Which plan costs less at each level of care
HDHP saves you (below zero, the PPO does)Same cost
Above the zero line the HDHP costs less, below it the PPO does. The cheaper plan by level of care: the HDHP up to $2,775, the PPO from $2,775 to $17,753, the HDHP above $17,753. Across this range the HDHP's biggest margin is $1,100 and the PPO's is $205.
What a year costs on each plan, by how much care you use
PPOHDHP after the HSA
With no care at all a year costs $6,600 on the PPO and $6,000 on the HDHP; in a very bad year, when both plans reach their out-of-pocket maximum, it costs $11,100 and $10,551. The cheaper plan by level of care: the HDHP up to $2,775, the PPO from $2,775 to $17,753, the HDHP above $17,753.
Best year, your year and worst year
PPOHDHP after HSA
No care
$7k
$6k
Your $4,000
$8k
$8k
A very bad year
$11k
$11k
The most a year can cost is $11,100 on the PPO and $10,551 on the HDHP after the HSA: the HDHP is $550 cheaper in the worst year and $600 cheaper in a year with no care.
The cost at each level of care
| Medical bills | PPO | HDHP after HSA | Cheaper |
|---|---|---|---|
| $0 | $6,600 | $6,000 | HDHP by $600 |
| $1,000 | $7,200 | $6,342 | HDHP by $858 |
| $2,500 | $7,500 | $7,367 | HDHP by $133 |
| $4,000 (yours) | $7,800 | $7,955 | PPO by $155 |
| $5,000 | $8,000 | $8,111 | PPO by $111 |
| $10,000 | $9,000 | $9,111 | PPO by $111 |
| $20,000 | $11,000 | $10,551 | HDHP by $450 |
| A very bad year | $11,100 | $10,551 | HDHP by $550 |
At $4,000 of care the PPO costs $7,800 and the HDHP $7,955. Every figure is the premium plus what you pay out of pocket, less your employer’s HSA money and the tax your own HSA dollars save.
What moves the needle
Each row re-runs the calculation with one change. Click to apply.How it's computed
FORMULA
You pay = all of the bill up to the deductible, then your share of the rest, never more than the out-of-pocket maximum
Cost of a plan = premium for the year + what you pay out of pocket
HDHP with an HSA = premium + what you pay − employer HSA dollars used − tax rate × your own HSA dollars used
Tax rate = federal bracket + payroll tax saved (7.65%, or 1.45% above the Social Security wage base, or 0 if you deposit it yourself)
Break-even = a level of medical bills where the two plans cost the same, solved exactly on each straight piece of the two cost lines
- Medical bills are the allowed amounts for covered in-network care, before insurance pays anything. Copays, out-of-network care, services a plan does not cover and prescription tiers are not modelled; a flat copay counts here only if it applies to the deductible.
- Premiums are your share only, for the full year. The defaults on this page are an example pair of plans, not a quote: replace every plan number with the ones in your plan documents (the Summary of Benefits and Coverage).
- The HSA pays your bills from the account in this order: your employer’s dollars, then yours. Your own dollars go in before tax, so each one you spend saves 31.65% here (your federal bracket plus payroll tax). State income tax is not counted, so if your state also exempts HSA contributions your saving is a little larger.
- Only what you spend this year is counted. HSA money left over is still yours and carries into next year; it is shown as “Left in your HSA”, not counted as a saving. It is a real advantage of the HDHP that this comparison does not price.
- The page assumes the account holds the money when you need it. Contributions arrive through the year, so a large bill early in the year can be more than the account holds at that point.
- 2026 limits: HSA $4,400 for one person and $8,750 for a family, employer dollars included, plus $1,000 from age 55. A plan qualifies with an HSA only with a deductible of at least $1,700 ($3,400 family) and an out-of-pocket maximum of at most $8,500 ($17,000 family).
WORKED EXAMPLE · SAMPLE NUMBERS
PPO: $6,600 premium; at $4,000 of bills you pay the $500 deductible plus 20% of the other $3,500, which is $1,200. Total $7,800. HDHP: $6,000 premium; you pay the $3,200 deductible plus 20% of the other $800, which is $3,360. Your employer’s HSA money pays $500 of it and $2,860 comes from your own pre-tax HSA dollars, which saves 31.65% × $2,860 = $905. Total $6,000 + $3,360 − $500 − $905 = $7,955. $140 stays in your HSA.
SOURCES
[1]Rev. Proc. 2025-19: 2026 inflation-adjusted amounts for health savings accountsInternal Revenue Service[2]Publication 969: Health Savings Accounts and Other Tax-Favored Health PlansInternal Revenue Service[3]Out-of-pocket maximum/limitHealthCare.gov glossaryHSBuilt by Hussain Sehorewala · checked against worked examples · Sep 29, 2026
Keep this number honest as your life changes.
Put it on your Money Map and it re-runs as you change the seven numbers. It stays in this browser, and the calculator stays free.
Questions about this result
It depends on how much care you use, and the answer can change more than once. With the example plans on this page (an HDHP premium $600 a year lower, a $500 employer HSA deposit and $3,000 of your own), the HDHP costs less in a year with little care, the PPO costs less between about $2,775 and $17,753 of medical bills, and the HDHP costs less again in a very bad year. Enter your own plans to see where yours flip.
Money you put into an HSA is not taxed as income, and through payroll it also skips Social Security and Medicare tax, so each dollar you spend from it on care costs you less than a dollar. Employer deposits pay your bills first. What you do not spend stays yours and carries into next year. For 2026 you can put in $4,400 for one person or $8,750 for a family, employer dollars included, plus $1,000 from age 55.
For 2026 the IRS requires a deductible of at least $1,700 for one person or $3,400 for a family, and an out-of-pocket maximum no higher than $8,500 or $17,000. You also generally cannot have other health coverage that is not a high-deductible plan, or be enrolled in Medicare. If the HDHP you enter is below those limits, this page leaves the HSA out.
The total allowed amounts for the year: what your plan has negotiated for each service, before it pays anything. Last year’s explanations of benefits add up to a good starting point; then add anything you know is coming, such as a pregnancy, a surgery or a new prescription. A low guess favors the HDHP and a high guess favors the PPO, so try a few levels and read the table.
It is the level of medical bills where a year on the PPO and a year on the HDHP add up to the same dollars, premiums and HSA included. Below and above it one plan is cheaper. Because the plans have different deductibles and maximums, there can be more than one such point, and the chart marks each.
Copays, out-of-network care, services a plan does not cover, prescription tiers, dental and vision, state income tax, and what an HSA might earn if you invest the leftover. Unspent HSA money is shown but not counted as a saving. This is arithmetic on the numbers you enter, not a recommendation of a plan; check the plan’s Summary of Benefits and Coverage before you choose.