Benefits Age continually researches and monitors new insurance products, searching for better coverage and cost savings for our clients. We are proud to offer the revolutionary insurance product, Health Savings Accounts (HSAs). HSAs are the most innovative insurance plan designed in the last four years. They were created by the Medicare Prescription Drug Improvement and Modernization Act and are designed to help people save for future qualified medical and retiree health expenses on a tax-free basis.
HSAs Innovative Savings
Millions of people are now able to change the way they meet their health care needs with the health care cost innovation provided by HSAs. They are tax-free accounts that any group with a qualifying high-deductible health insurance plan can open. If the contributed money in an HSA is not spent within the year, it stays in the account and gains interest tax-free, just like an IRA. Unlike Flexible Spending Accounts, which forfeits money by the end of the year if not used, the money in an HSA rolls over and continues to gain tax-free interest.
Individuals will have greater control over their health care decisions with an HSA. This empowers the individual or family members to manage their health care costs. The tax-advantaged contributions can be made in three ways:
- An individual and family members can make tax deductible contributions to the HSA even if the individual does not itemize deductions.
- The individual’s employer can make contributions that are not taxed to either the employer or the employee.
- Employers with cafeteria plans can allow employees to contribute untaxed salary through a salary reduction plan.
HSAs Tax Advantages
- Deposits to a Health Saving Account are 100% tax deductible.
- HSA funds withdrawn to pay for qualifying medical expenses are not taxed.
Quality Employee Benefits
By providing quality employee benefits, Benefits Age will help ensure that your company attracts the finest employees. For additional information about Health Savings Accounts, contact Tim Elenz at (800) 317-0181.