Health Savings Accounts offers a great way for individuals to take more control of their health care, by controlling the dollars they spend on their routine health care.
For employers, it's a way to introduce consumerism into your health benefits program, while providing the protection your employees expect and deserve.
And both employees and employers will enjoy the tax benefits of the HSA.
Key advantages of a Health Savings Account
Advantages for Individuals
- Portability - If you leave your current employer, you can take your HSA with you.
- Tax savings - Your contributions to the HSA are made with tax deductible or pre-tax dollars, so you'll pay less in income taxes.
- Control - You can use the HSA to pay for any qualified medical expense, as defined by the IRS. There's no need for preauthorization of services.
- Savings and Investments - unlike premiums, unused HSA dollars remain in the HSA until you use them later.
Advantages for Employers
- Reduced Premiums - You can reduce your insurance premiums substantially by switching to an HSA-qualified high-deductible health plan. Unlike premiums, unused HSA dollars remain in the HSA until you use them later.
- Tax savings - Your contributions to the HSA are made with pre-tax dollars.