5 Answers to Top HSA Questions from Employers
April 25, 2018
Increasingly, employers are turning to consumer-driven health plans, which put participants in greater control of their own healthcare. These plans give employees more flexibility to manage their funds while also lowering their premiums. A High-Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA) has become the go-to option for employers moving in this direction. And, with that combination, there’s even more potential for savings.
If you’re thinking about switching your employees to an HDHP and HSA (or you recently did), we've answered some common questions about them. And complete the form below to get your free eBook, which will help you transition your company to an HDHP and HSA.
How does an HSA work?
A Health Savings Account lets your employees contribute money to their account pre-tax and pay for eligible healthcare expenses from their account. This helps them build funds to cover any eligible expenses until they reach their deductible.
What do I need to do to ensure my employees are eligible for an HSA?
They must be enrolled in a High-Deductible Health Plan. According to the IRS, an HDHP in 2018 must have a minimum deductible of $1,350 for self and $2,700 for family.
What are the advantages to an HSA for my employees?
A Health Savings Account differs from other benefits offerings because:
- It has a triple-tax advantage. Employees’ contributions, withdrawals for eligible expenses and earnings are all tax-free.
- Your employees have the option of investing their funds, which makes it a smart tool for investment and retirement planning.
Are there also benefits for me when I offer employees an HSA?
You also save when your employees participate in HSAs. In addition to the lower premiums that you and your employees will see, your contributions to employees’ accounts are tax deductible. An employer match or contribution to employees’ accounts is also a great way to boost participation.
What steps can I take to make getting started with an HSA easy for my employees?
We offer a number of tools and resources to make understanding and planning for Health Savings Accounts easy for participants. The Employee Resource Center on our website was built with their needs in mind and offers useful tools, like HSA calculators, helpful videos and more. And be sure to subscribe to our blog, which provides helpful tips and industry insights for both you and your employees.
Have you recently transitioned your employees to an HDHP and HSA, or would you like to learn more about these plans? Complete the form above to download our eBook today!