ABA/ABIA HSA COUNCIL APPLAUDS SCHWARZENEGGER PROPOSAL TO MAKE HSA

CONTRIBUTIONS DEDUCTIBLE

WASHINGTON, Jan. 11—The Health Savings Account Council, a joint project of the American Bankers Association and the American Bankers Insurance Association, supports Gov. Arnold Schwarzenegger’s proposal to increase the attractiveness of health savings accounts in California by allowing pre-tax contributions on the state level.

 “If implemented, an important roadblock will be cleared for Californians to enjoy the full advantages of health savings accounts,” said Kevin McKechnie, staff director of ABA/ABIA HSA Council. “By aligning state tax deductions with federal deductions for health savings accounts, Californians will join 37 other states whose citizens are better able to take advantage of new ways to manage their health care dollars.”

Health savings accounts are disadvantaged in states that do not align their tax laws with federal laws that allow pre-tax contributions to plan accounts.  People in Alabama, California, New Jersey and Wisconsin—a population of over 54 million —are not allowed to make pre-tax contributions to health savings accounts for state income tax purposes.

The proposal was part of a comprehensive plan made by Gov. Schwarzenegger to expand availability of health care in the state. 

About the ABA/ABIA HSA Council

The HSA Council is a joint project of the American Bankers Association and its insurance affiliate, the American Bankers Insurance Association. Its members are banks and their insurance and technology advisors dedicated to improving American healthcare by improving the distribution of HSAs through banks.  The HSA Council can be found at www.hsacouncil.com.

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