Health Savings Accounts (HSAs) Are Changing the Way Millions Save for Their Health Care Needs

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Due to recent legislation signed into law by President Bush, individuals can now save for future health care expenses on a tax-free basis. The Health Savings Account, or HSA, is like a medical expenses IRA and is catching on with both individuals and employers.

Due to the “Medicare Prescription Drug, Improvement and Modernization Act of 2003” signed into law by President Bush on December 8th, 2003, individuals can now save for future health care expenses on a tax-free basis.

The Health Savings Account, or HSA, is a special account owned by an individual. Contributions are made to the account to pay for current and future medical expenses. The HSA is not the health plan itself. It is actually a type of tax-free savings vehicle for handling the contributions. The HSA is used in conjunction with a “High Deductible Health Plan” or HDHP. These are specially designed health plans that meet HSA eligibility criteria.

There are many benefits to the new HSA plans. All contributions, earnings and eligible withdrawals are tax-free. All contributions belong to the individual and are portable. Any unused amounts will roll over for use in later years. Individuals and family members can make tax-deductible contributions to an HSA even if the individual does not itemize deductions. There are no income restrictions and no requirements of having earned income to contribute to the plan. Finally, to further encourage savings for future health care expenses, HSA owners between the ages of 55 and 65 are able to make additional “catch-up” contributions ($500 in 2004). currently offers five HSA plans from Blue Cross of California, Blue Shield of California and Health Net. Using the website’s quote engine, a search can be narrowed to just show HSA plans. To help in the visitor’s decision-making process, each plan’s benefits are outlined in detail.

In three simple steps, California health plan shoppers can get affordable health coverage for their individual or family needs. Within minutes they can run a list of quotes, compare plans, make a choice and download the plan application. Some plans even offer an online application. Once the application is submitted, most people are approved within days. The site is designed for ease of use and does not require interaction with an agent. If questions arise, visitors to the site can fax, e-mail or call. is a joint venture between California health insurance licensed agents Steve Rumsey and Paul Hewitt. Mr. Rumsey and Mr. Hewitt have been licensed in California for 10 years.

For information:


Steve K. Rumsey, MBA

California License #0B60100

2101 E. 4th St., Suite 120A

Santa Ana, CA 92705

Phone: 877-885-7468 or 714-836-7744

Fax: 714-836-7766


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