Health Savings Accounts coupled with a HSA-compliant high deductible health plan (HDHP) allow employees to set aside funds on a pre-tax basis when deposited through payroll deduction. Deposits are tax-deductible when deposited independently by an employee. These funds grow from year to year on a tax-deferred basis and employees can access funds without paying taxes provided the funds are used for qualifying medical expenses.
This plan option helps create a consumer conscious culture thus increasing employee awareness of the true cost of healthcare expenses. In order to offer an HSA, an employer must comply with the IRS mandates outlined for HSAs which include but are not limited to minimum annual deductible and out of pocket maximum requirements as well as the elimination of any copayments for services that are rendered prior to reaching the plan deductible. In addition, only limited consumer-directed tax-advantaged accounts are allowed in conjunction with a HSA. Unlike other consumer driven health accounts, HSAs are portable, and accrued funds can continue to be used for qualified healthcare expenses regardless of where an employee works, but contributions can only be made to the account if an employee is covered by a qualified HDHP.
Several carriers and banking institutions offer solutions for implementing a HSA option in your benefits package. Accelerated Benefits partners with several vendors and can provide guidance in selecting the appropriate alliances for our clients. In addition, AccBen will offer ongoing employee advocate support to address questions and concerns.
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