An Empirical Comparison of a Low-Deductible Health Plan With an HSA-Qualified Plan

Abstract

The desire to control health care expenses has led to the increasing adoption of consumer-driven health plans. One such choice is between traditional low-deductible and health savings account (HSA)—qualified high deductible health plans. In this analysis the authors forecast medical expenses over a 40-year period to compare financial outcomes associated with each plan. Using realistic plan parameters and assumptions, the authors find that the HSA-qualified plan outperformed the traditional plan in 21 of 24 simulations. The framework provided in this article will assist employee benefits professionals in structuring appropriate plans and will assist employees in making appropriate health plan choices.