A lower premium usually means a higher deductible. Enter two plans and your expected spending to see which is cheaper overall and the break-even point where they cross.
Sample input: Plan A monthly premium ($): 500, Plan A deductible ($): 1000, Plan B monthly premium ($): 350, Plan B deductible ($): 4000, Expected medical spending this year ($): 3000
Plan B cost minus Plan A cost: 200 (Plan A is cheaper for you)
At your expected $3,000 of spending, Plan A is cheaper by about $200 (Plan A $7,000 vs Plan B $7,200). The two plans roughly break even around $2,800 of annual medical spending — below that the lower-premium plan tends to win, above it the lower-deductible plan does.
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It shows Plan B's total cost minus Plan A's. A negative number means Plan B (the lower-premium plan) is cheaper at your spending level; a positive number means Plan A (the lower-deductible plan) is cheaper. The break-even is where the two total costs are equal.
It is the annual medical spending at which both plans cost the same. Below it, the plan with the lower premium tends to win because you rarely touch the deductible; above it, the plan with the lower deductible wins because you absorb less out-of-pocket cost.
If you expect light medical use, a lower premium saves money most years, and an HSA-eligible high-deductible plan adds a triple-tax-advantaged savings account. Healthy savers often come out ahead, per HealthCare.gov plan comparisons.
This simplified comparison uses premiums plus out-of-pocket up to each deductible. For a fuller estimate including coinsurance and the out-of-pocket maximum, use the Health Plan Cost Estimator on each plan separately.