Deductible vs Premium Tradeoff Calculator
Compare a low-premium high-deductible plan against a high-premium low-deductible plan at your expected medical spending.
How it works
Total cost = annual premium + min(expected costs, deductible) · Compare the two plans at your expected spending
Choosing a health plan is a bet on how much care you will use. A high-deductible plan wins in healthy years because its low premium is guaranteed savings, while a low-deductible plan wins in expensive years by capping what you pay out of pocket. This simplified model adds the yearly premium to your out-of-pocket spending up to the deductible; a full comparison would also weigh coinsurance, the out-of-pocket maximum and any HSA tax advantage the high-deductible plan unlocks.
Worked example
Plan A costs $250/month with a $5,000 deductible; Plan B costs $450/month with a $1,000 deductible. At $3,000 of care, Plan A totals $3,000 + $3,000 = $6,000 while Plan B totals $5,400 + $1,000 = $6,400 — Plan A wins by $400.
Frequently asked questions
Should I pick a high or low deductible?
Choose a high deductible (and low premium) if you are generally healthy and could cover the deductible from savings — the premium savings are guaranteed. Choose a low deductible if you expect frequent or costly care, so your out-of-pocket exposure stays capped.
What is the break-even point?
It is the level of annual medical spending at which both plans cost you the same. Below it the cheaper-premium plan wins; above it the lower-deductible plan pulls ahead. This tool estimates it by comparing total costs across spending levels.
Does this include the HSA advantage?
No. Many high-deductible plans qualify for a Health Savings Account, whose triple tax advantage can tilt the math further toward the high-deductible plan. Factor in your expected HSA contribution and tax bracket separately.
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Educational estimate, not insurance or financial advice — real premiums and coverage depend on underwriting, your state and the specific policy.