This is how an HDHP/HSA works -

1)  You should consider a plan's premium and your projected out-of-pocket costs before benefits begin under that plan, in conjunction with the plan's co-insurance (or co-payment) rates. This gives the true cost for that plan.   This worksheet will give you an idea of some typical projected out of pocket costs.

2) It will be to your advantage to contribute as much of your own money into your HSA that is allowed, because you make those contributions with tax-deductible dollars (even if you don't itemize on your tax return). Thus, you save the money that you would have otherwise paid in taxes. Contributing the maximum amount with tax deductible dollars reduces your net out-of-pocket costs before plan benefits begin, as well as your maximum out-of-pocket expenses. Plus, funds in your Nevada HSA can accumulate year after year without limit or possibility of forfeiture.

3) Absent health care needs, if you contribute a higher amount to your HSA, you get a higher tax deduction plus a higher balance in your HSA to use for future expenses. Since your deductible defines the maximum amount of personal, tax-deductible, contributions you can make, if you use a relatively low amount of health care and you can afford to make the maximum contribution, you should definitely take advantage of this tax sheltered Nevada Health Savings Account.

4) When reviewing how much you may have to pay out-of-pocket with an HDHP, remember that unlike traditional plans, HDHPs count ALL covered expenses toward your catastrophic limit. Once you reach that limit, the HDHP provides all covered benefits without requiring any payment from you (assuming you use network providers and you select a plan that has 100% co-insurance). In traditional health benefits plans, co-payment (e.g., office visits and drugs) amounts generally do NOT count toward the plan's catastrophic limit and you may have to pay some types of co-insurance (some plans up to $4,000) before you get to the catastrophic coverage.