Are you a California health insurance shopper who also has a hectic work and personal life and doesn’t feel like getting bogged down in lengthy discussions about math theories? Hey – we hear ya! If you’re shopping for an affordable California health insurance plan and have your eye on an HSA-compatible high deductible health plan, you’re probably thinking that – with everything on your plate right now – you want a quick, clear and concise explanation of how to achieve the savings you’re after while also securing the health coverage benefits you and your family can rely on moving forward.

Let’s use our time here together wisely and quickly get to the major reasons why a HSA-compatible health plan strategy can be a real money saver:

1. Purchasing a high deductible health plan will typically yield a lower monthly premium for its owner. Important saving #1.
2. Your annual contributions to your HSA – 2010 Annual contribution limit of $3,050 for individual and $6,150 for family – yields a 100% tax deductible benefit for your tax return. That tax deduction is yielding tax savings that are helping to pay for either your HSA contribution itself or your health plan premiums depending on how you want to look at it.  Important savings #2.
3. The unused funds in your HSA accrue tax free – like an IRA. You don’t pay any taxes on money saved in your HSA. Money you withdraw from your HSA for qualified medical expenses is also not subject to taxes. Important savings #3.
4. Purchasing a HSA-health plan that provides for 100% coverage and no coinsurance obligation for all benefits after you’ve met your annual deductible? Then that’s your annual out-of-pocket maximum as well: After your annual deductible is met, your health care services for the remainder of that plan year – from a prescription drug purchase to a major operation – are the responsibility of your California health insurance company. No coinsurance formulas or percentages to figure out. Important savings #4.

There it is: Your CliffsNotes HSA math course for the California health insurance plan shopper. Now, while we gave you the highlights here, let’s take a moment to remind our readers that purchasing a California health insurance plan is a vitally important process in that it needs to yield both the right mix of health benefits you and your family will need moving forward as well as the budget-friendly premiums that will allow you keep this vitally important component of a sound personal financial plan in place for the long run. If you like what you’ve seen here, reach out to us for an always free, always careful and considerate client consultation that will help to ensure peace of mind that the affordable California health plan you ultimately select is the right one for your unique situation.