A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-compatible health plan. Offering a Health Savings Account can provide a number of benefits for you and your employees.
How HSAs Benefit You
Save Money
When your employees make pre-tax contributions to their HSAs they are saving you money. The pre-tax amount is excluded from FICA, Unemployment and Workers Compensation taxes. The more you encourage your employees to contribute the more you will save. See the table to the right for an example of your potential savings.
Provide Affordable Coverage
With healthcare costs on the rise, many companies struggle to maintain health coverage for their employees. HSA-compatible health plans can provide affordability without giving up coverage.
- HSA-compatible health plans typically have lower premiums than traditional plans
- Premiums generally increase at a slower rate
- Preventive care is often covered at 100% before the deductible is met, with no co-payments
Read how one company embraced HSAs and lowered health costs while still reducing its employees’ potential out-of-pocket cost.
Gain Healthy Employees
Healthy employees positively affect your bottom line. Many employers pair a wellness program with their HSA program to promote overall health. As your employees become healthier your healthcare utilization may decrease.
Give Ownership to Employees
Employee-owned funds promote increased motivation for involvement in healthcare decisions.
HSA Bank’s 2008 Consumer Benchmark Survey indicates that HSA-compatible health plan respondents are more likely to be engaged consumers who ask about costs prior to making appointments, seek information about generic prescription alternatives and select lower cost treatment. HSAs are a great way to motivate your employees to become involved in their healthcare decisions.