California Medical Insurance – Health Savings Accounts (HSAs)
Are you self-employed or an individual seeking to save money on your California Medical Insurance premiums and looking for less overall out-of-pocket exposure. Then you should consider a California health insurance plan that is HSA-compatible. If you wondering what an HSA compatible health plan is let me explain. An HSA is a personal savings account set up directly with you health insurance plan that allows you to pay for qualified medical expenses with tax-advantage dollars. You contribute money to an HSA through pre-tax or post-tax contributions. The money contributed to the account is not subject to federal income tax at the time of deposit. Funds in an HSA roll over are accumulated year after year if not spent. This means all the money that you contribute to the HSA is owned by you. An HSA can be open by any individual or family as long as their health plan is HSA compatible.
Once a HSA has been open, you can start contributing money into it right away. The money you contributed to the HSA can be either pre-tax or post tax. With the money in your HAS you will be able to pay for qualified medical expenses. The qualified medical expenses also count toward your annual out-of-pocket maximums. When an HSA is set up many financial institutions will provide you a debit card of check book for easy access to HAS funds.
An HSA also won’t cost you anything as it’s a savings account. And like any savings account you can earn interest on your money that you have contributed to it. Individuals can contribute $3,050 per year and families can contribute $6,150 per year. HSA’s also typically allow for pre-tax contributions, meaning they are deductible from you gross income when you file your federal taxes.
If you would like to receive more detailed information about California Medical Insurance HSA accounts and HSA compatible plans or just have question in general don’t hesitate to contact me.