Health Savings Accounts (HSA)
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The costs of health benefits for your employees are going through the
roof. There is good news and bad news. You know the bad news-this trend is
hurting you and your business. The good news is that there ARE actions that
you can take as an employer and as a consumer to address
this problem.
HSAs are a new option for health insurance with two parts. The first
part is a health insurance policy, a high deductible health plan (HDHP),
that covers large hospital and healthcare bills. The second part of the HSA
is a bank/investment account from which you can withdraw money tax-free to
pay expenses up to the level of you high deductible. The money accumulates
from year to year, earns investment income tax-free, and is available to
pay for certain "Eligible Medical Expenses" per IRS guidelines. Funds withdrawn from an HSA for
non-medical purposes are subject to tax and a penalty. At retirement, any unused funds in your
HSA may be withdrawn for any purpose and you pay normal income taxes.
HSAs are like a 401(k) for your healthcare expenses. In the HSA model, consumers spend
their own money up to the level of their high deductible health
insurance policy. Therefore, employees that exercise, refrain from smoking,
maintain proper weight, and make appropriate healthcare decisions are
financially rewarded. More information
about HSAs which can help you determine if this option is right for you and
your company may be found below:
HSA Information and Resources
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Do you have a question about HSAs or how to manage your HSA
account?
Go to:
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