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Health Plan Comparison

HDHP or PPO? Pick with real math, not gut feel.

Compare two health plans side-by-side. Total annual cost = premiums + out-of-pocket − HSA tax savings − employer HSA. The winner isn't always obvious.

HDHP

wins by

$3,108/yr

Your expected use

Plan A: HDHP

Plan B: PPO

Side-by-side

HDHP premium

$2,160

PPO premium

$5,040

HDHP OOP

$3,460

PPO OOP

$1,692

HDHP net cost

$3,624

PPO net cost

$6,732

Freedom Coach™

HDHP wins by $3,108/yr net.

HDHPs win when you're healthy — lower premium + HSA tax break. PPOs win in high-utilization years or with chronic conditions.

  • Model your WORST year, not average — an ER visit, surgery, or new diagnosis flips the math.
  • If your employer seeds the HSA, it's often free money — count it in the plan comparison.
  • Both spouses on separate plans? Compare "employee only" on both vs. "family" on one — often $2k–$5k/yr difference.

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Frequently asked questions

HDHP or PPO — which is better?

HDHPs win in healthy years thanks to lower premiums and HSA tax breaks. PPOs win in high-utilization years or if you have chronic conditions or expensive medications.

Should I model my best year or worst year?

Both — but weight the WORST year more heavily. An ER visit, surgery, or new diagnosis can flip which plan is cheaper. Plan for the risk you can't afford, not the year you hope to have.

What about the HSA tax break?

It's real money. At a 24% bracket, maxing an HSA saves ~$1,000/year in taxes forever — and the balance grows tax-free if you invest it.

Does employer HSA seed money count?

Absolutely. Employer HSA contributions are pure additional compensation. Include them when comparing plans — they often make the HDHP a landslide.

What if both spouses have employer plans?

Compare 'employee only' on both plans vs. 'family' on one. The delta is often $2k–$5k/yr — always run both scenarios.

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