HSA Savings Calculator

For Brokers and Group Administrators

The HSA Savings Calculator helps your customers estimate the value of offering their employees a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). A BlueSaver^SM HSA Solution (PPO HDHP and Bancorp HSA) can cut costs for your customers while providing members with tax savings and interest-earning advantages.

Use this tool to show customers the estimated annual costs of setting up an HDHP with an HSA versus a traditional managed care plan.

1. Enter the plan participation, plan rates, and tax information in the fields shown. Change default values as needed. Note: Data in all fields is required.
2. Select Show annual total per employee or Show annual total expenses.
3. Click Calculate or View Report for your results.

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Legal Disclaimer:
IBC provides a health savings account ('HSA') calculator to help you generally compare health program options for your clients. While IBC uses its best efforts to maintain the accuracy and reliability of the data and/or information you obtain on IBC's website, IBC cannot guarantee the accuracy of the data and/or information you may obtain through your use of the HSA calculator. By use of the HSA calculator you understand and agree that IBC neither assumes nor accepts any responsibility for the accuracy of the data and/or information you may obtain through your use of the HSA calculator. You should independently verify any data and/or information that you obtain.

Note: Enrolling in an HSA-qualified HDHP is not a guarantee of savings. The HSA-qualified HDHP may or may not result in a savings based on the group's demographics, existing plan, and the HDHP selected.

Definitions

Total number of employees

Enter the number of employees eligible for coverage.

Average employer contribution

Enter the percentage of the deductible that the employer would contribute to an employee's Health Savings Account (HSA).

Average employee contribution

Enter the percentage of the deductible that the employee would contribute to their Health Savings Account (HSA).

Number of employees with single coverage

Enter the number of single contracts that would participate in the High Deductible Health Plan (HDHP) and Health Savings Account (HSA).

Number of employees with husband/wife coverage

Enter the number of husband/wife contracts that would participate in the High Deductible Health Plan (HDHP) and Health Savings Account (HSA).

Number of employees with parent/child coverage

Enter the number of parent/child contracts that would participate in the High Deductible Health Plan (HDHP) and Health Savings Account (HSA).

Number of employees with parent/children coverage

Enter the number of parent/children contracts that would participate in the High Deductible Health Plan (HDHP) and Health Savings Account (HSA).

Number of employees with family coverage

Enter the number of family contracts that would participate in the High Deductible Health Plan (HDHP) and Health Savings Account (HSA).

HDHP deductible

Enter the HDHP deductible amounts for single coverage, husband/wife coverage, parent/child coverage, parent/children coverage and family coverage. (The husband/wife, parent/ child, parent/children, and family deductible amounts are the same value.)

Monthly HDHP premium

Enter the monthly premium per employee for the High Deductible Health Plan (HDHP). Enter the single, husband/wife, parent/child, parent/children and family coverage premium amounts. (For groups of 2-99, the parent/child and parent/children premium amounts are the same.)

Monthly Current premium

Enter the monthly premium currently paid, per employee, for the current health plan. Enter for single, husband/wife, parent/child, parent/children and family coverages.

FUTA & State unemployment tax rate

Enter the appropriate state unemployment tax rate. We assume that the state unemployment tax applies to all income earned and is a flat percentage. State unemployment taxes are not collected on health insurance premiums paid by the employer or contributions to an HSA as long as those contributions are paid on a pre-income tax basis. Pre-income tax contributions must be made through a "salary reduction" plan (also known as a "Section 125 plan" or "cafeteria plan").

This calculator assumes that all employees earn enough that the FUTA tax benefit does not impact the calculation. This would assume that all employees earn more than $7,000 plus the cost of the HDHP premium plus the total employee contribution to the HSA.

Income tax rate for business expenses

Enter marginal income tax rate for business expenses. The cost of health insurance premiums and employer contributions may be deducted from business income taxes. We use marginal income tax rate to calculate the total income tax savings produced by these deductions to your taxable income.

Note: FICA and Medicare are not collected on health insurance premiums paid by the employer or contributions to an HSA as long as those contributions are paid on a pre-income tax basis. Pre-income tax contributions must be made through a "salary reduction" plan (also known as a "Section 125 plan" or "cafeteria plan"). This calculator assumes that all employees are under the maximum FICA tax payment limits.