{
  "slug": "high-vs-low-deductible-plan-cost",
  "title": "High vs Low Deductible Health Plan Cost Calculator",
  "heading": "High vs Low Deductible Health Plan Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/high-vs-low-deductible-plan-cost",
  "summary": "Compare total annual cost of a high-deductible plan against a low-deductible plan based on expected usage.",
  "description": "A high-deductible health plan (HDHP) charges lower monthly premiums but exposes you to more out-of-pocket cost before coverage kicks in, while a low-deductible (PPO/HMO) plan charges more monthly but caps your exposure sooner. This tool totals premiums plus expected out-of-pocket spending for both plans at your anticipated medical usage level to show which costs less for your household this year.",
  "formula": "Total Cost = (Monthly Premium × 12) + min(Expected Medical Spend, Deductible + Coinsurance Share, Out-of-Pocket Max).",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=high-vs-low-deductible-plan-cost",
  "inputs": [
    {
      "id": "hdhpPremium",
      "label": "HDHP monthly premium",
      "kind": "number",
      "hint": null,
      "default": 350,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "hdhpDeductible",
      "label": "HDHP deductible",
      "kind": "number",
      "hint": null,
      "default": 3000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "ppoPremium",
      "label": "Low-deductible plan monthly premium",
      "kind": "number",
      "hint": null,
      "default": 550,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "ppoDeductible",
      "label": "Low-deductible plan deductible",
      "kind": "number",
      "hint": null,
      "default": 750,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "expectedMedicalSpend",
      "label": "Expected annual medical spend",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower total cost plan",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "hdhpTotal",
      "label": "High-deductible plan total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "ppoTotal",
      "label": "Low-deductible plan total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Difference at expected usage",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "HDHP monthly premium: 350 $",
      "HDHP deductible: 3000 $",
      "Low-deductible plan monthly premium: 550 $",
      "Low-deductible plan deductible: 750 $",
      "Expected annual medical spend: 4000 $"
    ],
    "outputs": [
      "Lower total cost plan: High-Deductible Plan",
      "High-deductible plan total cost: $7,400",
      "Low-deductible plan total cost: $8,000",
      "Difference at expected usage: $600"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter hdhp monthly premium ($).",
      "Enter hdhp deductible ($).",
      "Enter low-deductible plan monthly premium ($).",
      "Enter low-deductible plan deductible ($).",
      "Enter expected annual medical spend ($).",
      "Read your lower total cost plan on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "hdhpPremium": 210,
        "hdhpDeductible": 1800,
        "ppoPremium": 330,
        "ppoDeductible": 450,
        "expectedMedicalSpend": 2400
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "hdhpPremium": 350,
        "hdhpDeductible": 3000,
        "ppoPremium": 550,
        "ppoDeductible": 750,
        "expectedMedicalSpend": 4000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "hdhpPremium": 560,
        "hdhpDeductible": 4800,
        "ppoPremium": 880,
        "ppoDeductible": 1200,
        "expectedMedicalSpend": 6400
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Does an HDHP always cost less?",
      "a": "Only if your medical spend stays relatively low — heavy users of care often come out ahead on a low-deductible plan despite the higher premium, because their out-of-pocket exposure is capped sooner."
    },
    {
      "q": "Can I pair an HDHP with an HSA?",
      "a": "Yes — HDHPs are the only plans that qualify for HSA contributions, which adds meaningful tax-advantaged savings potential not captured in this simple cost comparison."
    },
    {
      "q": "What if I have an unexpected major medical event?",
      "a": "Compare each plan's full out-of-pocket maximum, not just the deductible — that's your worst-case annual exposure and often matters more than the everyday-usage math."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/hsa-vs-fsa-savings-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — High vs Low Deductible Health Plan Cost Calculator (https://www.revenuelab.fyi/toolbox/high-vs-low-deductible-plan-cost)"
}