Health Plan: Deductible vs Premium

Total annual cost = premiums × 12 + expected medical × cost-share until OOPM.

Inputs

Result

Total annual cost
$8,400
$4,800 premium + $3,600 OOP medical.
  • Annual premium$4,800
  • Deductible$3,000
  • Coinsurance20%
  • OOP max$8,000
  • Expected medical$6,000
  • Out-of-pocket spend$3,600
  • Total annual cost$8,400

Step-by-step

  1. Annual premium = $4,800.
  2. Pay deductible ($3000), then 20% of overage. Capped at OOP max $8,000.
  3. Total = premium + OOP = $8,400.

How to use this calculator

  • Enter premium + plan limits + expected medical use.
  • Compare totals across plan options.

About this calculator

Health plans trade off premium vs. cost-share. Low-deductible plans charge higher premiums but lower per-visit. High-deductible (HDHP) charges low premium, you cover first $3,000+ of care, but caps your worst-case at OOP max. The break-even depends on actual usage — light users prefer HDHP; heavy users (chronic conditions, planned surgery) prefer low-deductible.

Frequently asked

No — OOP max is your medical cost cap. Premiums are separate. Total annual cost = premium + OOP medical (capped at OOP max).

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