HDHP vs PPO: Which Plan Type Costs You Less?
The HSA is the real argument for a high-deductible plan, and it is a strong one — if you can fund it.
At a glance
Figures checked 1 Sep 2026
What to take away
- For 2026 an HSA-qualifying plan needs a deductible of at least $1,700 self-only or $3,400 family, with out-of-pocket capped at $8,500 and $17,000.
- HSA contribution limits for 2026 are $4,400 self-only and $8,750 family, plus $1,000 if you are 55 or older.
- An HDHP without a funded HSA is usually just a worse plan.
A high-deductible health plan trades a lower premium for a higher deductible, and in exchange makes you eligible for a health savings account — the only account in the US tax code with three tax advantages at once.
Running the comparison
Take the annual premium difference between the two plans, add any employer HSA contribution, and compare that total against the extra deductible exposure. Then add the tax saving on your own HSA contributions at your marginal rate.
The employer HSA contribution is the piece people overlook. An employer putting $1,000 into your HSA closes most of a typical deductible gap before you have contributed anything yourself.
When the PPO wins
- You have ongoing treatment or expensive maintenance prescriptions.
- A birth or planned surgery is coming.
- You do not have cash on hand to absorb the deductible.
- You will not actually fund the HSA.
Common questions
Yes. The account is yours permanently. You simply cannot make new contributions in years when you are not covered by a qualifying plan.
No — that is an FSA. HSA balances roll over indefinitely and can be invested.