Health Savings Accounts Help Consumers Save on Their Taxes and Health Care

February 09, 2012

As 2011 W-2 forms and 1099s start arriving in mailboxes throughout the country, now is the time to remind taxpayers with health savings accounts (HSAs) that they have until April 17 to contribute to their HSAs to maximize their 2011 deductions, up to the legal limit.

For 2011, HSA contributions are tax deductible up to $3,050 for individuals and up to $6,150 for families. HSA holders who are 55 and older can deduct an additional $1,000. In 2012, tax-deductible contribution limits have been increased to $3,100 for individuals and $6,250 for families.

Health savings accounts have two components: a tax-advantaged savings account coupled with a high-deductible health insurance plan. In addition to the tax savings, a high-deductible health plan paired with an HSA typically costs significantly less in monthly premiums compared to more traditional health insurance while still providing quality coverage, including preventive care.

Savings deposited into an HSA grow tax-deferred and can be withdrawn tax-free as long as the HSA dollars are used for qualified medical expenses, which include health insurance deductibles as well as vision and dental care that are not covered by health insurance plans.

“HSAs make sound financial sense because they enable consumers to save tax-free for their current and future medical needs,” said Richard A. Collins, CEO, UnitedHealthcare’s Golden Rule Insurance Company.

According to a recent Fidelity Investments® survey, “almost seven in 10 (68 percent) of pre-retirees said the cost of medical care in retirement is one of their three biggest financial concerns.”

“Unspent HSA savings can accumulate year after year, earning interest. This helps build up a ‘medical nest egg’ that can be valuable later in life when health care needs can increase significantly,” Collins said.

To learn more about HSAs, visit, an interactive online resource developed by Golden Rule to educate consumers about the advantages that health savings accounts offer. Golden Rule’s expertise in the consumer-directed health care market goes back more than 20 years when the company introduced the first medical savings account (MSA), predecessor to the HSA.

About Golden Rule
A leading provider of health insurance for individuals and families for 65 years, Golden Rule has been a UnitedHealthcare company since 2003. UnitedHealthcare’s personal health and dental plans are offered in 41 states and the District of Columbia, and marketed under the UnitedHealthOne brand. For more information, consumers can call 1-800-444-8990, visit or contact a local independent insurance broker who offers UnitedHealthOne health and dental plans. 

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