HSA Health Savings Account –  lower premiums and  Tax Deductions?

Introduction to Health Savings Accounts HSA 

• Health Savings Accounts (HSA’s) ^{IRC 223} * allow you to save money, premium & Federal taxes but apparently not CA taxes, by getting a qualified Silver or Bronze  high-deductible health Insurance  plan (HDHP).
  • (FAQ What is a high deductible plan) 
  • Trump Big Beautiful Bill any Bronze or Catastrophic plan is considered an HDHP plan  ^{HSA Bank}
  • FYI  Covered CA Countable Sources of Income 
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• So, no, generally a grandfathered plan won’t do that. High deductible Bronze plans have lower premiums than say Silver, Bronze or Platinum.  See button below for a proposal.   Premiums vs co pays, deductibles etc, are a function of the MLR Medical Loss Ratio, where Insurance Companies are mandated to pay 80c and 85c of every dollar in premium in claims or pay rebates.  So, if you don’t think you’ll have tons of low end claims, an HSA might be the thing for you.
  • See Introduction in the HSA Guidebook for a simple explanation.
  • Sterling Administration You Tube Video Help! What exactly is an HSA Health Savings Account?
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• You can put in – deposit any amount at any time, up to the contribution limits.  You don’t have to put in deposits if you don’t feel like it.  Best of all, you can put in a deposit, just before you pay any part of your  deductible.
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• The contribution to your HSA is tax deductible, lowers your Adjusted Gross Income on line 25 of 1040 with Form 8889 attached.   Graph of savings. 
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• You can withdraw from your HSA tax free  any   allowable medical  expenses ^{(IRS Publication 502, Internal Revenue Code (IRC) §213 [d])) Aetna} even some Health Insurance Premiums through your HSA bank account – debit card.  The maximum contributions ^{Wells Fargo}  * ^IRS *  ^SHRM * are in the  table below. If you are over age 55 an additional $1k can be deposited.  An HSA is very similar to an IRA, except that it is for medical expenses.
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• When you retire, the money in your account can still be used for medical and some Insurance Premiums, without paying taxes. Check out this article on why you need an emergency fund. 
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• Without an HSA or having an EmployER sponsored plan,  medical expenses are not usually deductible unless they are more that 10% ^{PPACA 9013} of adjusted gross income ^{IRS Publication 969.PDF  California tax* IRS publication 502 *}  Here’s an FAQ on having an Employer Sponsored HSA.   Often though Employer’s prefer richer plans – Los Angeles Times.  
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• One might also consider a supplemental accident plan to cover the deductible in a Bronze HSA Plan.
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• ACA Health Reform does not appear to have any effect on HSA’s other than the change from 7.5% to 10% that one would have to otherwise incur for premiums and expenses to be deductible and over the counter medications must have a prescription. ^{PPACA 9013 healthcareexchange.com cigna.com hsawells fargo} While there is a $2k deductible limit for individuals and $4k for families, to qualify as an essential benefit, since the HSA account provides reimbursement, ^{42 USC 18022 (2)} there should be no problem.  Check with your tax or legal adviser.

#Sales Brochures
Learn More

• Typical HSA usage & Savings  See someone Save
• Ask for the Cash Discount and other ways to save with a high deductible plan CA Health Line 5.1.2017
• Cal Choice
  • HSA Fast Facts
  • The California Choice^® HSA & Banking Partners UnitedHealthcare HSA brochures & information
• Health Net HSA for Life
  • Health Net HSA Compatible Plans
• Anthem Blue Cross
  • Employers Guide with Application  8/2024  POP Plan 
• UnitedHealthcare
  • Helping to make the transition to an HSA health plan easier
  • Guide Lines (2022)
  • Introduction to HSA
  • FAQ’s
• Sutter – HDHP High Deductible Health Plans
• Blue Shield Bronze HDHP EOC Explanation VIDEO

#Banks that do HSA Health Savings Accounts

• Basic HSA.com
• Optum Bank
  • User Guide
• HSA Bank
• Sterling HSA.com
  • VIDEO’s
• Kaiser HSA’s
• The College Investor – Recommendations
• Bank of America
• California Credit Union
• Cal Choice
• Lending Tree Comparisons
• TASC
• ADP
• Video bogus HSA Administrator gets raided  

Kaiser & Blue Shield

Treatment Cost #Estimator Tool
requires sign in

The tool is for all Kaiser Members that are enrolled on Deductible or  Health Savings Account Plans.  The cost estimates are for services that are marked "after deductible" to give members an idea of the cost of  those services.

• 2021 Kaiser Sample Fee List 
  • How do I know what level of service I will get billed for?
    • find a code.com 
    • kaiser permanente.org/standard-charges
    • South Bay Medical Center
      •  All Services and Items
      • Shoppable Services
    • very well health.com/finding-icd-codes
    • cms.gov/Medicare/Coding/ICD10
• BLUE SHIELD Treatment Cost Estimator – for PPO Members
• Cost Helper.com what people are paying for health services

FAQ’s

• Question If I’m over 65 and no #longer eligible to contribute to an HSA, what about my spouse?
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• Answer: Qualifying for an HSA
  • To be an eligible individual and qualify for an HSA, you must meet the following requirements.
  • You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
  • You have no other health coverage except what is permitted under Other health coverage, later.
    You aren’t enrolled in Medicare.
  • You can’t be claimed as a dependent on someone else’s  tax return.
    • If another taxpayer is entitled to claim an exemption for you, you can’t claim a deduction for an
      HSA contribution. Publication 969 *
• On the other hand:
  • Question? Can I contribute to my spouse’s HSA if I’m enrolled in Medicare and no longer HSA eligible? IRS   (Sec. 223(c)(1)(A)(ii))
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  • Answer Yes. If your spouse is HSA-eligible and has an HSA, you – or anyone else – can contribute to his HSA. Your enrollment in Medicare doesn’t disqualify him from contributing to (or accepting contribution from others into) his HSA.  Read More HSA’s & Medicare *
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  • Question My spouse is already on Medicare and I will be covered by a consumer driven health plan this year. How much will I be able to contribute to my HSA?
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  • Answer If you are covering both your spouse and yourself on your consumer driven health plan (CDHP), you will be able to contribute up to the IRS family maximum to an HSA in your name
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  • Question – If I go on Medicare Mid year… How do I report the contributions for when I was eligible to contribute
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  • Answer Form 8889 Part 1 Question # 2 and Q 9  Catch Up is allowed Q 7
    • If you are 55 or older, you will also be able to make the $1,000 catch-up contribution to an HSA established in your name. If you are covering yourself only on the CDHP, you will be able to contribute up to the IRS individual maximum  plus the $1,000 catch-up (if eligible), into an HSA in your name. Your spouse on Medicare is not eligible to contribute to an HSA in his or her name, regardless of whether he or she is covered on your medical plan
    • HSA & Medicare
    • Enroll-in-Part-A-and-B
      • • FAQ’s
    • Section 223 – Health Savings Accounts—HDHP Family Coverage Rev. Rul. 2005-25
    • See above for Publication 969
    • Medicare & You Handbook
    • Is a spouse a dependent?
    • Medicare’s tricky rules on HSAs after age 65  Journal of Accountancy
    • 
• (2) Married dependents
  An individual shall not be treated as a dependent of a taxpayer under subsection (a) if such individual has made a joint return with the individual’s spouse under section 6013 for the taxable year beginning in the calendar year in which the taxable year of the taxpayer begins.

   

  • 26 U.S. Code § 152 – Dependent defined