HSA questions and
California Health Plans
California Health Plans
888-810-9968 toll free
714-389-6831 fax
California License 0E98112

There are still reasons for picking a HSA if you go to the doctor more often than normal.

a.        You still have more control over the health care given and treatments than the traditional plans. With an HMO, you must face the
rationalization placed by HMOs to contain costs, which could include waiting list to see a specialist and treatment and prescription drug
formularies that may not have the most up-to-date treatments or brand name drugs that would make you feel the best.
b.        Money… with a low deductible PPO like a 500 PPO, it would cost more per month than a typical HSA plan.  For example a 45 yr old
in Orange county with a 2400 deductible vs. a 500 deductible PPO and both with $5500 in doctors expenses in a year...

With the 500 PPO a person has to spend the first 500 (deductible) then pays typically 20% of the remaining cost until a total of 5000 is
spent, in this case for $5500 in services, it is $1500 in after tax money. The 500 deductible plan is $438/month from Blue Cross. So this
year you would spend a total of $6756

In the same scenario with a 2400 HSA plan you spend 2400 in pre taxed money before everything gets paid by the carrier. So in this
instance you pay $2400 in pre taxed money from your HSA account. The 2400HSA plan is $147/month from Nationwide. So this year you
spend a total of $4167
$500 deductible PPO
With $5500 in services

with a 500 PPO you have a $500 deductible


Then pay 20% of everything until 5,000 is spent

5000 x .20 = 1000

100 + 500 = 1500

So $1500 plus the price of insurance.
$2400 HSA PPO plan
With $5500 in services

The 2400 HSA plan has a 2400 deductible so..


So $2,400 plus the price of insurance
What if I go to the doctor more often, would I
still be better off going with a HSA plan?
HSA is cheaper by at least $2500!

How is that?
500 PPO cost/month
With $5500 in services

$428/month = $5256 a year
(45 year old in Orange county)

Plus $1500
w/ 5500 in services
2400 HSA cost/month
With $5500 in services

$147/month = $1764 a year
(45 year old in Orange county)

Plus $2,400
w/ 5500 in services
HSA plan still wins with over
$2500 in savings!
What if you spend just $2400 in a
year for health expenses?
500 PPO plan
With 2400 in healthcare one year.

$428/month = $5256 a year

$500 (deductible) + (.20 x 1900)

$6136 in one year cost
2400 HSA plan
With 2400 in healthcare one year.

$147/month = $1764 a year


$4164 in one year cost
Can you say that again?
And of course if we do not use either plan
the HSA plan comes out less expensive
every month year after year.
Want to jump start your HSA Account?

If you have a existing IRA account
New for 2007 you can do a one time transfer of funds from your
IRA account into your HSA account fully funding it for the year
without penalty!!!
What happens if I do not use all my money in my
HSA Account this year?

It rolls over to the next year just like a IRA account but you
get a debit card to pull money out penalty free for medical