Why Offer HSAs to Your Employees?

Offering an HSA provides many benefits to you and your employees. As you consider the benefits of an HSA as they relate to you and your employees, please consider the following:

It's no secret. Health insurance premiums continue to rise. This makes it difficult for employers to offer coverage and employees to accept it. An HDHP/HSA combination is a solution. The HDHP has a lower premium, while the HSA provides a tax favored method to help pay expenses toward the deductible.

The National Coalition on Health Care released its Facts on Health Care Costs, which stated that employee-sponsored health insurance premiums increased 87 percent from 2000 to 2005. In comparison, cumulative inflation was 18 percent during the same period.¹ 

The effect of HSAs becoming more accepted in the employer-sponsored health care marketplace is controlling these premium increases. In 2007, Kaiser Family Foundation reported that employer-sponsored health insurance premiums increased 6.1%, the smallest annual rise since 1999.²  

Click here to learn how Webster Bank, N.A. controlled its premium costs by utilizing HSA-compatible health plans.

HSA funds roll over from year to year, which provides your employees with an opportunity to save for future medical expenses. Most of HSA Bank’s accountholders have taken advantage of this opportunity. Nearly 97 percent of all open accounts with HSA Bank rolled over funds from 2007 to 2008 with an average balance of more than $2,100.

Calculate the potential future value of your HSA with HSA Bank’s Future Value Calculator.

Employers are beginning to put a greater focus on the health of its employees because employee health equates to employee satisfaction. And satisfied employees reflect well on a company’s bottom line. HSAs encourage employees to participate in wellness plans (employer incentives can increase participation even more) and maintain a healthy lifestyle.

Unlike HRAs and FSAs, HSAs encourage responsible health care spending. HSA funds belong to the employee, and roll over year to year. An HRA generally belongs to the employer (which requires much more administrative time and cost than HSAs) and FSA funds must be spent on health care or they are lost. Click here to compare the features of HSA, HRA and FSA programs.

¹ http://www.nchc.org/facts/2007%20updates/cost.pdf 
² http://www.kff.org/insurance/7672/