"I have the flexibility to get the services I want-such as chiropractic, acupuncture, and orthodontics-at a discounted rate."

Courtney is a single mom with a young daughter in need of braces. Instead of paying a big premium for a health insurance plan that doesn't cover orthodontics or visits to the chiropractor and acupuncturist, she opted for a High Deductible Health Plan in order to open an HSA. This enabled her to contribute the amount she needed in order to pay those non-covered services with tax-free dollars.

Comparison

Summary

When Courtney used our comparison tool to apply her annual premium savings to her new higher deductible, the number showed up in parenthesis. This made her think it was negative; however, upon further review she realized that she was actually saving more money by switching to the lower premium plan, than her new higher deductible. She also contributed the maximum amount into her HSA and was able to tax deduct that amount from her income, saving her $1412.50 on taxes. To find out how much you can save by contributing to an HSA, use our Tax Savings Calculator.