After Tax Cost of Health Plans: Comparing HSA to Individual Health Plans  
                   
  Zip Code Your Age Smoker Spouse Age Smoker # of Ch Effective Date  
   
                   
  Assumed Marginal Tax Rate   Process      
                   
        Lifewise Lifewise  
        HSA - 50 HSA Wise Advantage  
  Deductible     $ 2,500 $ 1,000 $ 1,880  
                   
  Monthly Cost of Insurance  
1 Max HSA Account Deposit  
  Monthly Outlay    
  Annual Outlay (Monthly x 12)  
                   
2 Annual Tax Savings for Ins.  
3 Annual Tax Savings for HSA  
  Total Annual Tax Savings  
                   
4 Annual Outlay - Tax Savings  
5 Less Annual HSA Deposit  
                   
6 Net Annual Cost    
                   
  Insurance Out-of-Pocket Maximum (including deductible)        
   
                   
  Notes:                
1 The 2012 Max Annual HSA contribution is $3100 for individuals & $6250 for families ($1000 extra if age 55+)
  (HSA Contributions are not required, however, failure to contribute defeats the tax advantages)
2 Annual Cost of Insurance x Tax Rate (100% of insurance premium is deductible to Self-Employed)
3 Tax Rate x Annual HSA Account Deposit
4 Annual cost of insurance less annual taxes saved from deduction for insurance and HSA contributions.  
5 The HSA is not a premium expense, but rather a transfer of assets to a tax-deferred account
6 Annual Cost - (Annual Savings + HSA Deposit)
                   
  Other Notes:
  HSA can be used for additional items such as dental, vision, orthodontia, prescription vitamins, etc.
  Funding is not required for HSA. Not necessary to fund in future years if no claims.
  Unused funds in the tax-deferred HSA account can be withdrawn without penalty at age 65,
  but withdrawals are subject to federal taxes if withdrawn for non-qualified expenses.    
                   
For more info on any of the plans, contact Green Financial at 800-877-8019
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