California falls short on health savings accounts

I read with interest your article about employers looking to consumer-directed health plans with high deductibles as a means to continue to offer benefits in today’s costly healthcare environment (“Employers seek options as healthcare costs climb,” Nov. 20).

Health savings accounts are an important feature of consumer-directed healthcare. Under a 2003 federal law, people can open these accounts and invest thousands of dollars annually to pay for qualified healthcare expenses. This money is exempt from federal taxes and can be carried over from year to year to build up savings.

Unfortunately, California is one of five states that have not conformed to the federal tax treatment of health savings accounts. That means that, unlike residents in New York, Massachusetts and Ohio, Californians who invest in the accounts still face state income tax on the money invested.

I have tried unsuccessfully for years to persuade the state Legislature to pass laws to relieve Californians who contribute to their own health savings accounts from incurring state taxes. It is simply wrongheaded to penalize Californians for taking greater control of healthcare decisions for themselves and their families.

Abel Maldonado

State senator

R-Santa Maria