Health Savings Accounts: Employer Information

Health Savings Accounts are growing in popularity, providing traditional coverage through unconventional means. Health Savings Accounts and High Deductible Insurance Polices focus on the consumer and the need for flexibility. With increased accessibility to coupled insurance plans many employers are offering enrollment options in Health Savings Accounts to their employees. Health Savings Accounts are transforming the American health care system. Health Savings Accounts are allowing Individual policyholders and employers the opportunity to move away from traditional models of insurance coverage that dominate health care transactions. Health Savings Accounts enable transactions between patient and physician in which the patient has control over how the dollars are spent. By offering Health Savings Accounts to your employees you are offering a policy that is rich in opportunity.

In short Health Savings Accounts are portable accounts that allow individuals to deposit money into their Health Savings Account on a tax free basis. The funds within the Health Savings Account can be withdrawn tax free to pay for qualified medical expenses including preventive care, health insurance deductibles, qualified premiums, prescription drugs, over the counter medications as well as long term care services. The High Deductible Health Insurance plans provide coverage for potential catastrophic medical expenses. It is the purpose of Health Savings Accounts to provide individuals with information rich resources that will enable them to make informed decisions regarding their health care, health treatment and health management options.

With more and more individuals seeking control over health care decisions, employers looking to contribute to Health Savings Accounts should understand how it would work on their end. When making a deposit into an employee Health Savings Account that amount is excluded from the employee's income. Should the employer not provide health insurance but those employed hold Health Savings Accounts, the employer can make pretax contributions to the employees' Health Savings Accounts. The total annual employer-employee contributions made to the Health Savings Account may amount to as much as one-hundred percent of the HSA health plan's annual deductible amount and can be used to cover any and all qualified medical expenses. Contributions made to an individual's Health Savings Account are tax deductible to the employer. If an employer is making contributions into Health Savings Accounts it must be made in equal part to all employees.

Health Savings Account provide comprehensive coverage for those enrolled and also offer great incentives to the employer who offers this up and coming health insurance option.

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