Health Savings Account

Tax-Advantaged Savings for Healthcare Expenses

Health savings accounts (HSAs) that let employees save pre-tax dollars for medical costs while building long-term savings.

The Problem

Healthcare costs keep rising, and traditional insurance isn’t enough on its own. Employees face out-of-pocket costs like deductibles, copays, and prescriptions and employers want to offer benefits that go beyond the basics without breaking the budget.

The Plan

A Health Savings Account (HSA) is an employee-owned account where funds can be set aside pre-tax to pay for qualified medical expenses. Both employers and employees can contribute, giving your team a valuable tool for managing healthcare costs now and saving for the future.

Key Features of HSAs

  • Employee-owned, portable savings accounts.

  • Pre-tax contributions from both employees and employers.

  • Funds roll over year to year (unlike FSAs).

  • Eligible for use with High Deductible Health Plans (HDHPs).

  • Can grow through tax-free interest and investment.

Why It Matters for Employers

HSAs offer advantages for your business too:

  • Lower premiums through required HDHPs.

  • Payroll tax savings from employee pre-tax contributions.

  • Tax-deductible employer contributions.

  • Flexible funding schedules that align with your budget.

  • An attractive benefit that supports retention and recruitment.

How It Works

  1. Employer sets up a Section 125 cafeteria plan.

  2. Employees must be enrolled in a High Deductible Health Plan (HDHP).

  3. Contributions (employer and/or employee) go into the HSA.

  4. Employees use funds for qualified medical expenses like deductibles, prescriptions, and copays.

  5. Unused funds roll over annually and can even be invested for long-term growth.

The Result

With HSAs:

  • Employees save money now on medical costs.

  • Employees build long-term savings for future healthcare needs.

  • Employers cut costs while offering a benefit that truly matters.

  • Everyone wins with more control, flexibility, and security.

Considering adding an HSA to your benefits package? Contact us to explore the best option for your business.

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