CaliforniaChoice announced a partnership Monday with Bancorp Bank to offer Californians a health savings account.
These accounts give people a way to pay for many medical expenses with tax-exempt funds that they set aside monthly until needed. Employee contributions can be made on an after-tax basis and taken as an above-the-line deduction on tax returns, making the contributions tax-free.
CaliforniaChoice covers the health needs of more than 160,000 members through 10,000 employer groups numbering from two to 50 workers.
The Orange, Calif., company has brought together HSA trustees to provide an online resource center for the general public to learn more about HSAs and establish and manage an account directly with one of its FDIC-insured banking partners. Bancorp Bank is a Wilmington, Del., Internet outsourcer of banking products.
