Health Savings Accounts

A Health Savings Account (HSA) is an alternative to traditional health insurance that offers tax advantages and greater control over your medical expenses. With an HSA, you can pay for current health expenses and save for future qualified medical and retiree health expenses - all on a tax-free* basis. 

To open an HSA, you must be covered by a High Deductible Health Plan (HDHP). Once you're enrolled, you own and control the money in your HSA. You decide how to spend the money, not a third party or health insurer. 

An HDHP provides traditional medical coverage and an HSA is a tax-free way to save for your future medical expenses. Together, they give you greater flexibility and control over how you use your health care benefits.

The HDHP features higher annual deductibles than traditional health plans. Depending on your HDHP, you may have the choice of using in-network or out-of-network providers. Using in-network providers typically will save you money. Except for preventative care, you must meet the annual deductible before the plan pays benefits. Preventative care services are generally paid either before you meet your deductible, after you meet a smaller deductible or on a co-payment basis.

*Consult your tax advisor.

Providing attractive health benefits doesn't have to be expensive. An employer-sponsored Health Savings Plan (HSA) can help you share the cost of health care with your employees in ways that benefit your business and your employees. HSAs are available to eligible individuals who are covered by an HSA-qualified High Deductible Health Plan (HDHP). Your small business can provide HDHP coverage or employees can obtain the coverage on their own.

Employers Benefit by Offering Small-Business Insurance and HSAs

• Sharing the cost of health benefits with employees allows them to build a savings account with tax benefits*
• Employees self-administer their HSAs, resulting in minimal administration for your business 
• Contribute in a lump sum or in any frequency to your employees' HSAs with no minimum contribution requirements
• Attract and retain stellar employees by offering solid health care benefits 

Employees Benefit from HSAs

• Employees pay lower premiums with an HDHP and can use their savings to fund their HSAs
• Employees contribute pre-tax money, earn tax-free interest and make tax-free withdrawals when funds are used for qualified medical expenses
• Employees can save the money or use it for a wide range of health care-related expenses not typically covered by other health care accounts, such as purchasing long-term care insurance
• Employees own this asset and can use their HSAs to supplement their retirement income

*Consult your tax advisor. 

HSAs are an excellent way to create a second retirement account and to save money to pay for medical expenses during retirement. Your HSA contributions won't affect your IRA limits and you can withdraw funds tax-free* if the money is used to pay for medical expenses.

Money you deposit in your HSA is tax-deductible* and the money in the account grows tax-deferred like an IRA.

*Consult your tax advisor.