Customer Comparisons
The following are actual figures compare a medical savings health plan vs. a Virginia-based Blue Cross/Blue Shield traditional PPO plan for a healthy family of 4 in their mid-50’s. The family’s aggregate exposure is identical in both plans. Call to run your personal comparison: (800) 383-7729
|
Medical Savings
Health Plan |
Current Plan (Blue Cross/Blue Shield) |
|
| Monthly Cost of Insurance | $336.75 | $657.00 |
| Health Savings Deposit | $437.50 | $0.00 |
| Total Gross Outlay | $774.25 | $657.00 |
| Tax Deduction for Insurance | ||
| (Insurance Rate x 100% x 32%) | $107.76 | $210.24 |
| Tax Deduction for Savings Deposit | ||
| (Savings Deposit x 32%) | $140.00 | $0.00 |
| Total Tax Savings | $257.76 | $210.24 |
| Cost After Tax Savings | $526.49 | $446.76 |
| Health Savings Deposit (your money) | $437.50 | $0.00 |
| Net Monthly Cost of Insurance after Taxes | $88.99 | $446.76 |
*Combined Income tax rate for this family is 32% and they chose to deposit the maximum amount into their HSA, which is $437.50 per month.
How a Tax-Deductible Health Savings Account Works
Coverage for Actual Family in the Roanoke Valley, Age 50-59
| 1 | An insurance policy is purchased that pays big bills, up to $2 million. | Monthly cost for $5,250 deductible 100% plan |
$336.75
|
| 2 | Money is put into your own Health Savings Account (you choose the trustee for this account) | Maximum allowed monthly Health Savings Deposit ($5,250.00 per year). |
+$437.50
=$774.25 |
| 3 | You use the savings account to pay for small bills. You can also pay for eyeglasses, dental work and alternative medicine, like acupuncture, tax free. | Personal savings you control |
up to
–$437.50 |
| 4 | Net cost of the insurance is the lowest available | Per month after tax insurance cost |
=$88.99
|
