New LDHP vs HDHP Comparison Tool

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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csmath
Posts: 88
Joined: Sat Oct 13, 2018 11:32 am

New LDHP vs HDHP Comparison Tool

Post by csmath » Fri Nov 15, 2019 3:16 pm

I made a spreadsheet to better assess my options between available High and Low Deductible Health Plans.
I thought I'd share it, so here it is:

https://drive.google.com/file/d/1X7KRRZ ... 1DsM3/view

It allows you to do the following:
  • quickly visualize a wide range of possibilities rather than having to type in one scenario at a time.
  • better understand the savings over time.
  • evaluate how deciding between 403b or HSA contributions affect the outcome.
  • evaluate difference between using out-of-pocket money to pay off bills vs paying them from HSA.
  • apply growth to the investments.
  • apply growth to investments beyond the duration of your plan enrollment.
The following parameters are customizable:

Low Deductible Health Plan
  • Annual Premium
  • LDHP deductible
  • LDHP coinsurance
  • LDHP maximum out-of-pocket
High Deductible Health Plan
  • Annual Premium
  • HDHP deductible
  • HDHP coinsurance
  • HDHP maximum out-of-pocket
  • HSA maximum annual contribution limit
  • employer contribution to HSA
Global Variables
  • years of growth
  • years contributing to plan
  • CAGR
  • federal tax bracket in retirement
  • federal tax bracket for current medical expense
  • state tax rate
  • FICA tax rate (7.65% for most people -> 1.45% Medicare + 6.20% SS )
  • ENTER "X" if 403b contributions/distributions are State Tax EXEMPT
It is accurate to the best of my knowledge but I'd greatly appreciate any feedback if someone finds any mistakes. One major challenge in a fair comparison is that specific services are treated differently under various insurance plans. In the spreadsheet the LDHP Personal Responsibilities are best estimates. It ignores potential copays but also the fact that not all services apply the coinsurance either. Without calculating with specifics on what services are being used, an accurate cost seems pretty impossible.

Here are two other comparison tools that prompted me to make this one:
(credit goes to this one as I started with it as a foundation for my own)
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

and the financial toolkit from the Bogleheads.org wiki:
https://www.bogleheads.org/wiki/Tools_a ... ce_toolbox

Note: I wasn't sure which forum to put this in because it is a combination of personal finance and investing?

jane8
Posts: 17
Joined: Sun Mar 10, 2019 2:10 pm

Re: New LDHP vs HDHP Comparison Tool

Post by jane8 » Thu Nov 21, 2019 12:29 pm

Wow, this is fantastic, thanks so much, just what I needed as I consider the latest round of open enrollment at my employer. :sharebeer

Topic Author
csmath
Posts: 88
Joined: Sat Oct 13, 2018 11:32 am

Re: New LDHP vs HDHP Comparison Tool

Post by csmath » Thu Nov 21, 2019 12:34 pm

jane8 wrote:
Thu Nov 21, 2019 12:29 pm
Wow, this is fantastic, thanks so much, just what I needed as I consider the latest round of open enrollment at my employer. :sharebeer
Excellent! I'm glad you found it helpful and thank you for the comment.

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