California Health Savings Accounts
What is an HSA?
An HSA is tax-favored savings account that is used in conjunction with a high-deductible HSA-compatible health insurance plan to make healthcare more affordable and to save for retirement.
California residents can pay for qualified medical expenses with pre-tax dollars and save for retirement on a tax-deferred basis.
eHealthInsurance works with California insurance providers that offer health plans compatible with an HSA. Compare HSA-compatible health plans in California and select the plan best that works best for you and your family.
Advantages of a Health Savings Account
- Deducting 100% of your HSA contributions from your taxable income
- Having the money in your HSA accrue interest and/or gains on a tax-free basis
- Paying no penalties or taxes when you use your HSA to pay for qualified medical expenses
- Having a high-deductible HSA-compatible health insurance plan, which typically has a lower premium than a plan with a lower deductible
Annual Contribution Levels for HSAs
- For 2010, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,050.
- For family coverage, the maximum annual HSA contribution is $6,150.
- Catch up contribution for individual who are 55 or older is $1,000 (set by statute and unchanged from 2009).
Out-of-Pocket Spending on HSA-Compatible High Deductible Health Plans (HDHP)
For 2010, the maximum annual out-of-pocket amounts for HDHP self-coverage increase to $5,950 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,900.
Minimum Deductible Amounts for HSA-Compatible HDHPs
For 2010, the minimum deductible for HDHPs increases to $1,200 for self-only coverage and $2,400 for family coverage
California Income Tax Treatment on HSA Contributions
Residents of California cannot deduct HSA contributions on their California personal income taxes*.
*Source data according to Kaiser Family Foundation:
Data as of February, 2008.
Laws regarding HSAs are subject to change, please always check with a licensed agent or the IRS (www.irs.gov) regarding rules and regulations.
CA HSA-Compatible Plan Providers
- Anthem Blue Cross
- Kaiser Permanente of CA
- Blue Shield of California
- Sharp Health Plan
- Western Health Advantage
Best Sellers
- Silver 70 HMO
Provider: Anthem Blue Cross - Bronze 7500 Trio HMO
Provider: Blue Shield of California - Minimum Coverage HMO
Provider: Kaiser Permanente of CA - Silver 70 Off Exchange Premier HMO
Provider: Sharp Health Plan - Platinum 90 HMO
Provider: Western Health Advantage