Georgia Insurance Shop.com

The contribution limits for Georgia Health Savings Accounts (HSA's) have changed for 2010.

For 2009, the maximum can you can contribute to a Health Savings Account is a $3,000 for single coverage and $5,950 for family. Minimum HDHP deductibles are $1,150 (self-only coverage) or $2,300 (family coverage).

For 2010, the maximum can you can contribute to a Health Savings Account is a $3,050 for single coverage and $6,150 for family. Minimum HDHP deductibles are $1,200 (self-only coverage) or $2,400 (family coverage).

If your HSA-qualified coverage began in any month other than January and no later than December 1st, 2009, you can still make the full HSA contribution for the calendar year 2009. For example, if your coverage under an HSA-qualified policy did not begin until July 2009, you can contribute the full $3,000 self-only coverage or $5,950 for family coverage for 2009. However, you must keep your HSA-qualified coverage through at least the end of the following calendar year which would be December 31st, 2010 or you may have to pay back some of the contribution (and maybe interest and penalties). If you know that you're not going to keep your HDHP for one reason or another until December 31st, 2010 you may be better off prorating your contributions for 2009 and 2010.

For any year that you drop or lose your HSA-qualified coverage before the end of the year, you will not be able to make the full contribution to your HSA. You will need to pro-rate your contribution for that year. Count only those months for which you had HSA-qualified coverage on the first day of the month. For example, if you drop your HSA-qualified coverage at the end of June, you would only be able to contribute 50% of your allowed contribution for that year.

A Health Savings Account (HSA) is an affordable alternative to traditional health insurance that offers Georgia residents an alternative method to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical expenses on a tax-free basis.

The Health Savings Account is a great way to save money on premiums and taxes.