HSA's (Health Savings Accounts)
&
HSA-Eligible High Deductable Health Plans
Business Group Solutions---link from Services Diagram- 1) Health Insurance tab…and 2) all HSA tabs (under Business)…
High Deductible Health Plans combined with Health Savings Accounts are important new tools for employers and employees to improve their healthcare options. For a business owner, Health Savings Accounts are an inexpensive way to insure family and employees, while taking advantage of many tax benefits.
Dollars put into an HSA can be used for medical expenses not usually covered under a standard health insurance policy. Expenses like contact lenses, chiropractic care, physical therapy and others, can qualify and be paid for out of a Health Savings Account.
Small business owners thinking about adding health care insurance coverage as a new benefit to your workers should consider offering a High Deductible Health Plan with a Health Savings Account (HDHP & HSA). Offering employees a HDHP & HSA is a good first step, lowers healthcare costs and can provide retirement savings for future health care needs.
Typical group characteristics for considering a High Deductible Health Plan & Health Savings Account:
• Young adult (over 21 but under age 30)
• Predominantly single
• And/or responsible only for their own insurance needs
• Highly paid (over $50,000) because of tax-advantages alone
If workers are already participating in an IRA or 401(k) program with their employer, there will likely be interest in the Health Savings Account concept. Workers who support families and have an annual base income lower than $25,000, may not have the ability to set aside additional savings.
Keep in mind, if a company already offers a different type of health insurance plan, such as a HMO, PPO or POS with a low deductible ($500 or less,) some employees may be concerned to switch to a plan that requires them to pay more for a higher (at least $1000) deductible. The benefits of the Health Savings Account will need to be well defined.
For more information on Business Group Health Savings Accounts click here to contact us or call 816.222.0332
