Blue Cross of GA introduces new individual plans with optional Maternity Benefits

Blue Cross of Georgia introduced the new Forward Focus HSA plans with optional riders for maternity.  The Forward Focus plans from Blue Cross are high deductible health plans that are eligible for health savings account contributions which may be tax deductible for the individual.  This could be an excellent benefit because it would allow an individual to possibly pay for the maternity expenses on a pre-tax basis while having the in-network discounts of the large Blue Cross Blue Shield network in Georgia.

Here is the summary of HSA Limits for 2012:

2012 HSA Limits for Contributions

2012 HSA Limit for Individual Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $3,100 for an individual, up $50 from $3,050 in 2011.

2012 HSA Limits for Family Coverage

The 2012 maximum annual amount that can be contributed to an HSA is $6,250 for families,  up $100 from $6,150 in 2011.

2012 HSA Limits for Catch-Up Contributions

Persons over age 55 are entitled to an additional annual catch-up contribution of $1,000 in 2012—a number that unchanged from 2011.

To avoid taxation, any HSA distribution must be for qualified medical expenses, which include:

• amounts paid for medical care for the account holder or his or her spouse or dependent, who are not reimbursed by insurance;
• COBRA health insurance premiums; qualified long-term care insurance premiums;
• and other health insurance premiums, but only if the individual is receiving unemployment compensation.

Individuals can cash out their HSAs for purposes other than medical expenses, but these distributions are subject to both income tax and a 10 percent penalty tax if received before age 65 (except in cases of disability or death). Unused amounts in one year can be carried over to following years and added to subsequent contributions.