Texas 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.

Texas residents can pay for qualified medical expenses with pre-tax dollars and save for retirement on a tax-deferred basis.

eHealthInsurance works with Texas insurance providers that offer health plans compatible with an HSA. Compare HSA-compatible health plans in Texas and select the plan best that works best for you and your family.

Advantages of a Health Savings Account

You may save money in the short and long term by:

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

Texas Income Tax Treatment on HSA Contributions

Since Texas does not impose a state income tax, HSA contributions have no impact on state tax liability.

*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.