HDHP vs PPO Calculator (2027 Open Enrollment)
Open enrollment is when most workers pick next year's health plan, and the big question is usually: the cheaper high-deductible plan with an HSA, or the PPO with the higher premium? Enter the numbers from your benefits guide to see which plan costs less in a light year, a normal year and a bad year.
Federal bracket + state rate + 7.65% payroll tax if you contribute through payroll. 12% + 5% + 7.65% is about 25%.
2027 HSA and HDHP limits
Source: IRS Revenue Procedure 2026-24. Employer HSA money counts toward the limit.
When each plan usually wins
- HDHP + HSA often wins if you are fairly healthy, your employer adds HSA money, and you can afford the deductible if something happens. The HSA is triple tax-free: money goes in pre-tax, grows tax-free, and comes out tax-free for medical costs, and it is yours to keep.
- PPO can win if you expect a lot of care (a planned surgery, a baby, ongoing treatment), take costly prescriptions, or the PPO's out-of-pocket max is much lower.
- Always check that your doctors and drugs are covered by each plan's network.
How this calculator works
For each plan, total cost = 12 months of your premium + what you pay for care. Your care cost is the deductible first, then the coinsurance share, never more than the out-of-pocket max. For the HDHP it subtracts the employer's HSA deposit and the tax you save on your own HSA deposit (up to the 2027 limit). Copays, separate drug tiers and network differences are not modeled, so use it as a strong first estimate.
FAQ
Is an HDHP with an HSA worth it?
Often, for people with low to moderate medical costs, especially when the employer adds HSA money. Run your own numbers above for a light, normal and bad year.
What are the 2027 HSA limits?
$4,500 for self-only coverage and $9,000 for family coverage, plus $1,000 more if you are 55 or older.
Does unused HSA money expire?
No. Unlike an FSA, HSA money rolls over every year and stays with you if you change jobs.
Why are HSA payroll contributions better?
Through payroll they also skip Social Security and Medicare tax (7.65%), not just income tax.
What if I hit the out-of-pocket max?
After that the plan pays 100% of covered in-network care for the rest of the year. Compare each plan's worst case in the table.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.