Blue Shield HSA Plans - Health Savings Accounts

A Health Savings Account (HSA) is a tax-advantaged personal savings or investment account that you can use to pay for qualified medical expenses. With an HSA, you can take a more active role in your healthcare choices -- with the benefit of tax savings.

Please note: HSAs are offered through financial institutions including banks and credit unions. Blue Shield does not offer HSAs or tax advice.

An HSA can only be established in combination with an HSA-eligible high-deductible health plan. HSAs are portable -- you can take them with you if you switch jobs -- and may be accumulated over the years and distributed on a tax-free basis to pay, or reimburse, qualified medical expenses, such as doctor's visits and prescriptions.

Advantages of an HSA

• HSAs encourage savings for future medical expenses.
• You own the account and you decide:
  • How much to contribute.
  • How much to use for medical expenses.
  • Which medical expenses to pay from the account.
  • What type of investments might grow the account.
• Accounts are completely portable from one employer to the next.
• No "use it or lose it" rules.
• Accounts can grow through investment earnings, just like an IRA.
• "Catch-up" contributions are allowed for individuals ages 55 and older (contributions must stop once the individual is enrolled in Medicare).
• Favorable tax treatment of contributions, disbursements and investment earnings when you use them for qualified medical expenses.
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HSA Eligibility

In general, you are eligible for an HSA if you:

• Are covered by an HSA-eligible, high-deductible health plan, like our Shield Spectrum PPO Savings 2400/4800 and 4000/8000 plans*.
• Are not covered by other health insurance, but may be covered by permitted insurance (see Qualifying coverage below).
• Are not enrolled in Medicare.
• Are not claimed as a dependent on someone else's tax return.

Qualifying Coverage

You must be enrolled in an HSA eligible high-deductible health plan to qualify for an HSA. In addition, there are a few types of coverage allowed, including coverage for:

• Accidents or disability
• Insurance for a specified disease or illness
• Vision coverage
• Dental care
• Long-term care coverage
• Insurance related to workers' compensation and other liabilities
• Insurance that pays a fixed amount per period of hospitalization

HSA-Eligible High Deductible Health Plans

You must be enrolled in an HSA eligible high-deductible health plan if you want to participate in an HSA. Our Shield Spectrum PPO Savings plans meet HSA eligibility criteria, making it easier for you to start saving.

Blue Shield coverage gives you choices: We offer one of the largest healthcare provider networks in California -- which you can access for preventive care services even before you meet your deductible.

Note: Purchasing an HSA-eligible high-deductible health plan is only part of your eligibility for an HSA. You must also meet the other eligibility criteria and you must set up your HSA through a qualified HSA trustee or custodian. Check with your tax adviser to ensure that you meet the eligibility criteria.

Setting Up an HSA

There are a number of institutions that offer Health Savings Accounts (HSAs), including banks and credit unions. We recommend that you contact your agent or broker, or a financial institution that you currently do business with, to inquire about setting up an HSA. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish an HSA.

For your convenience, Blue Shield has an arrangement with Wells Fargo** as a preferred HSA administrator. As a Blue Shield member, you can benefit from increased convenience and lower costs when you set up an HSA with Wells Fargo.

*Underwritten by Blue Shield of California Life & Health Insurance Company
**Blue Shield may receive a nominal fee from Wells Fargo when a high-deductible health plan member it has referred establishes an HSA with Wells Fargo.