Health Savings Account (HSA)

A penny saved is a penny taxed, unless you’re considering a health savings account (HSA)! If you’re ready to save big on your healthcare and want to enroll in the UnitedHealthcare Choice Plus plan or a Kaiser HMO with a high-deductible plan (in California, Washington or Oregon), you should consider an HSA. You can use your HSA balance to pay for eligible healthcare expenses (PDF) with pre-tax dollars before and after you reach the plan’s deductible amount.

You contribute to your HSA through deductions from your pay. Fisher Investments also matches your monthly contributions, dollar-for-dollar. Each year, you could receive up to $1,125 for individual coverage and $2,250 for family coverage in company contributions if you’re on the UnitedHealthcare HSA Choice Plus plan. If you’re on the Kaiser plan, you could receive up to $1,000 for individual coverage and $2,000 for family coverage in company contributions. This covers half of your deductible amount.

For 2019 the Internal Revenue Service limits on contributions (yours and the company’s) are: $3,500 individual/$7,000 family. If you’re age 55 or older, you can contribute an additional $1,000.

Advantages of a Medical Option with an HSA

There are several other ways a medical option with an HSA may help your budget.

Company Contributions Help with the Deductible

The company’s contributions to your HSA cover about half of the deductible amount. So, after the company contributions, you’re paying about the same amount out-of-pocket as you would for another PPO plan.

Tax Savings

You won’t pay federal taxes on company or personal contributions to your HSA. This reduces your taxable income, so you pay less in taxes. Also, when you use the money in your HSA to pay for qualified healthcare expenses, you aren’t taxed. Note: If you live in California, HSA contributions (yours and the company’s) are subject to state tax.

Savings Grow Year to Year

Your HSA balance carries over each year and continues to grow tax-free with interest. You can choose to put your contributions into one of 22 no-load Vanguard mutual funds, or deposit your money into an interest-bearing bank account with debit card access. Plus, the investment earnings are tax-free!

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