Tax Savings Coast West Health Insurance | Individual | Family | Group

These tax-deductible savings plans allow taxpayers to save pre-tax dollars for future healthcare expenses. These plans were designed by the federal government to make it easier for some people to afford health insurance. Those who are eligible can reduce health insurance premiums and save tax dollars. Talk to one of our representatives today to see if you qualify for a Blue Cross Lumenos HSA.

Example of how HSA plans work

The Lumenos HSA plan, offered by California BC Life & Health Insurance Company, is a great way to help pay for your medical care if you are enrolled in a high-deductible health insurance plan. As you incur qualified medical expenses you can use money from your HSA as long as you aren’t reimbursed by your health insurance.

For instance, let’s say you have a choice between a $300 deductible plan that costs $800 a month, and a $3,000 deductible plan that costs $450 a month. If you choose the higher deductible with the lower premium, then you can save $3,000 during the year in an HSA by using before-tax dollars.

The money you deposit in an HSA is yours to keep from year to year. Even if you change jobs or location, your money will still be there for you to use toward medical expenses. The greatest part about it is that you never pay taxes on the money as long as it is strictly used for qualified medical expenses.

Why choose the BC Lumenos Plan over another HSA?

The Lumenos plan is unique because of the comprehensive coverage it provides. Other HSA plans give you the tax advantages, but leave you responsible for most of your expenses. With Lumenos, you get total coverage on a variety of healthcare services once you’ve met your deductible. Sign up is easy. Our representatives can assist you through the process and help you determine the best plan for your lifestyle.

The Skinny on Lumenos HSAs

Use your available HSA funds first to pay the cost of covered medical expenses and prescriptions.Unused funds rollover year-to-year.
HSA savings accounts build tax-exempt interest.
You have an unlimited choice of providers. If you see in-network providers, you may pay less for your care.
You can use your HSA funds for almost any healthcare cost: doctor’s bills, dental work and even bandages. As long as you use it on a health expenses, your money won’t be taxed.
Get 100% coverage for nationally recommended preventive care services with no deduction from your HSA and no out-of-pocket costs to you if you see an in-network provider.
Includes a Traditional Health Coverage component to protect you against further health expenses. Traditional Health Coverage begins after you have used your HSA balance and paid a limited amount out-of-pocket – called your Bridge – needed to satisfy your plan’s annual deductible.
Lumenos offers a variety of deductibles from which to choose: individual plan deductibles can be $1,500, $2,500, $3,000 or $5,000 and family plan deductibles can be $3,000, $5,000, $6,000 or $10,000.
For tax year 2009, HSA individuals can contribute up to $3,000, $5,950 for family coverage, and $1,000 for additional catch-up contributions for people age 55 or older.
Meets all federal guidelines for tax advantages
Offers account servicing for your HSA through Mellon Trust of New England

Who are HSA Plans For?

HSAs are for healthy individuals, families and seniors on Medicare. If healthcare is not a big expense for you, an HSA will work well. You’ll basically shift the bulk of your health dollars to money you can save and use later when you really need it. You will send less to insurance companies where it will disappear if not used.

People with higher medical costs might not find an advantage to using an HSA. Often the higher deductible plans are accompanied by higher co-pays and other limits. So any advantage through the use of the HSA is lost on those expenses. There may still be some tax advantage, however. You’ll need to crunch some numbers or talk to your tax advisor to see if an HSA will save you money.

Save on Taxes with an HSA

Typically HSA accounts are paired with high-deductible health insurance plans. Any contributions you make to your HSA are tax-deductible. Also, any earnings that you make through your account, such as interest and dividends, are tax-exempt. Withdrawals from a health savings account are tax free as long as you use the funds for qualified medical expenses (See IRS Publication 502, Medical and Dental Expenses for qualified medical expenses).

Blue Cross Disclaimer
The above information does not constitute legal, tax, or benefit plan design advice. Blue Cross strongly encourages consultation with a tax advisor before establishing a Health Savings Account. Any Health Savings Account will be established between the individual account holder and the HSA custodian or trustee. Blue Cross is responsible for the administration of the health plan and the custodian is responsible for the administration of the HSA.

Your HSA with Mellon Bank

The Lumenos HSA Plan includes account servicing for your HSA through Mellon Trust of New England. While you are not required to use Mellon Bank for your HSA, the features and services included with the Mellon HSA were designed to simplify and meet all of your HSA needs.

Key Features

Interest and Investments

You will earn interest on your HSA funds and will also have the opportunity to invest your funds once your HSA balance reaches $3000. Investment options include seven different mutual funds from the Dreyfus family of mutual funds. Once you are ready to invest, you can request a prospectus for each fund for more details.

One Stop Customer Service

Use your MasterCard® debit card or your HSA checkbook to pay your health care provider directly for eligible medical expenses, or to access cash from your account.

Account Activity Statement

Each month you will receive an HSA Monthly Statement from Mellon that shows all of your account activity. You will also receive a 1099 form and a 5498 form near tax time so you can file your taxes.

HSA Welcome Kit

After you enroll in your Lumenos HSA Plan with Mellon, your HSA account with Mellon will automatically be established – a separate application for your HSA is not required. Soon after enrollment, you will receive an HSA Welcome Kit with all of the banking documentation and instructions for how to activate your HSA. To activate your HSA, you’ll need to complete a simple signature process – online or by mail.

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Your Health Insurance Plan can help you pay fewer taxes.

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TAX SAVINGS & HEALTH INSURANCE

Pay fewer taxes by applying for a Health Savings Account (HSA).

Example of how HSA plans work

Why choose the BC Lumenos Plan over another HSA?