How can a Health Savings Account
save me premiums and Taxes too?

Health Savings Accounts (HSA’s) allow you to save money, premium & Federal taxes by getting a qualified Bronze  high-deductible health Insurance  plan (HDHP), as higher deductible plans have lower premiums.  

The contribution to your HSA is tax deductible, lowers your MAGI – Modified Adjusted Gross Income  and shown on line 25 of 1040 with Form 8889 attached. 

One then pays their   allowable medical  expenses (IRS Publication 502, Internal Revenue Code (IRC) §213 [d])) Aetna through your HSA bank account – debit card.  The maximum contribution in 2018 is $3,450 single and $6,900 family Wells Fargo  * IRSSHRM * See table below. If you are over $55 and additional $1k.  An HSA is very similar to an IRA, except that it is for medical expenses.

When you retire, the money in your account can still be used for medical and some Insurance Premiums, without paying taxes.

Without an HSA or having an EmployER sponsored planmedical expenses are not usually deductible unless they are more that 10% PPACA 9013 of adjusted gross income IRS Publication 969 .PDFCalifornia tax*IRS publication 502

HSA's IRS Publication 969
HSA’s IRS Publication 969
Suze Orman – HSA
Line 25 HSA Deduction
Line 25 HSA Deduction

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VIDEO from Optum Bank

One might also consider a supplemental accident plan to cover the deductible in a Bronze HSA Plan.

Donald Care proposals often tout HSA’s.  The Patient Freedom Act by U.S. Senators Bill Cassidy and Susan Collins talks about PRE Funding HSA’s.   AHCA Rev 3.6.2017 page 85 et seq

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 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.

Trumps HSA’s are a scam Blog Insure Me 11.21.2016

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Sales Brochures –  Learn More

See Steve Save

Ask for the Cash Discount and other ways to save with a high deductible plan CA Health Line 5.1.2017

Top 10 hit list for HSA presentation

Health Savings Checkup

Cal Choice

HSA Fast Facts

The California Choice® HSA & Banking Partners

United Health Care HSA brochures & information

Consumer Resources

Los Angeles Times 5.6.2013 on High Deductible Plans and HSA’s

LA Times 5.2013 on Pros – Cons of High Deductible Plans  la

Internal Revenue Bulletin: 2008-29  Health Savings Accounts – Guidance

Contribution and Out-of-Pocket Limits 
for Health Savings Accounts and High-Deductible Health Plans
2019 2018 Change
HSA contribution limit(employer + employee) Self-only: $3,500
Family: $7,000
Self-only: $3,450
Family: $6,900*
Self-only: +$50
Family: +$100
HSA catch-up contributions (age 55 or older) $1,000 $1,000 No change
HDHP minimum deductibles Self-only: $1,350
Family: $2,700
Self-only: $1,350
Family: $2,700
No change
No change
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) Self-only: $6,750
Family: $13,500
Self-only: $6,650
Family: $13,300
Self-only: +$100
Family: +$200
*The IRS originally set at $6,900 then recalculated to $6,850, but subsequently provided relief to effectively restore the original limit.

Source: IRS, Revenue Procedure 2018-30.

Child Pages

April 2014 Update

7 comments on “Health Savings Accounts – HSA

    • I’m not sure where you are getting the per person premium amount. It sounds like you are using the child premium only and not including yours and your husbands too. The screen shot above shows unsubsized outside of Covered CA using our free instant quote engine with subsidy calculation.

      Covered CA subsidies are available if your income is less than 400% of Federal Poverty Level – Income Chart or use our quote engine. Covered CA would pay advance subsidies, to be reconciled at tax time form 8962 which gets attached to your 1040. If you are not sure of your income, you can elect not to take subsidies and take them as a tax credit when you file your 2018 taxes.

      If you are getting subsidies due to low income, I doubt that a HSA would be much value as there wouldn’t be a lot of tax write off. I’m not a CPA or Attorney. Please read and review the above webpage and seek proper legal and tax counsel.

  1. There must be a better HSA plan. 40%!?

    Can you suggest an HSA plan with better coverage?

    It looks like the 2016 plan has $1000 more deductible and 10% higher co pay? Seems like poor coverage to me.

    Even if the premiums are higher we need to consider a better plan with lower deductible etc.

    Boy Obama care – should be called Give Me More Money for less Coverage Care

    • Let’s take a look at the detailed HSA United Health Care HSA $4,500/60% brochure from our FREE Almost Instant Small Group Quote Engine.

      1st off, if you are buying an HSA Health Savings Account it’s because one doesn’t think they are going to have much in the way of claims and you want to save premium $$$ by having a high deductible. The premium savings goes into your HSA account Tax Free and rolls over to the next year and even into retirement if you don’t use it.

      As we see from the online brochure, this plan has a $4,500 deductible and a Maximum Out of Pocket of $6,500 in network for individuals. Thus, the co-insurance amount of 40% only applies to $2,000 worth of claims between $6,500 and $4,500.

      I will send you quotes for alternate HSA plans in a private email. Please note the differences in networks as show on page 4 & 5 of the United Health Care brochure.

      All rates are based on an 80% loss ratio rule, so basically any premium one sends to an Insurance Company under ObamaCare, you get back 80% and the Insurance Company keeps 20% for overhead and profit. Why pay them to keep your money on small claims?

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