Insurance Premium vs Deductible Calculator

The total cost comparison is: annual premium + out-of-pocket costs (deductible and coinsurance until the out-of-pocket maximum). At zero claims, the low-premium plan is always cheaper. At maximum claims, the high-premium plan is usually cheaper because its lower deductible and OOP max reduce your cost exposure. The crossover point (indifference point) tells you which scenario makes each plan better.

The crossover point (also called the indifference point) is the level of annual medical spending where the total cost of both plans is equal. Below this point, the lower-premium plan costs less. Above this point, the lower-deductible plan costs less. It is calculated by finding the total claims amount where: Plan A total cost = Plan B total cost.

An HDHP is financially advantageous if you are generally healthy, have few expected claims, and can fund the deductible from an HSA or emergency savings. The IRS defines an HDHP for HSA eligibility as a plan with at least a $1,600 individual / $3,200 family deductible in 2024. The premium savings plus HSA tax benefits often outweigh the higher deductible for healthy individuals.

Coinsurance extends the total cost difference between plans beyond the deductible. Even after meeting your deductible, you continue to share costs (typically 20 to 30 percent) until reaching the out-of-pocket maximum. A plan with higher coinsurance costs more per dollar of claims above the deductible until the OOP max is hit.

Never compare plans only on premium. The Insurance Information Institute recommends always computing the total cost of care under different scenarios: no claims, a moderate claim, and a catastrophic claim at the OOP maximum. A plan that looks expensive on premium alone may have a much lower OOP maximum and be cheaper in a high-utilization year.