Health Savings Accounts (HSA) provide employees with tax-preferred funds set aside for a wide variety of medical, dental, pharmaceutical, and vision expenses. HSAs give individuals increased control over health care spending decisions and allow for the purchase of less costly high deductible health insurance.
Although the federal government has set a limit for how much can be set aside in an HSA, both employers and employees can make deposits to the account, up to the maximum. Once the money is deposited, it remains untaxed unless used for a non-allowed purpose.
HSAs also remain the property of the account-holder and there is no limit on the total funds that can be accumulated. These funds are part of the account holder’s estate and can be passed on to heirs.
The Affordable Care Act placed some limitations on HSA purchases, but the current effort to reform the ACA hopes to expand their use and the dollar amount that can be set aside.
HSAs are extremely popular with employees. Employers can use HSAs as part of their health plan, and can oftentimes reduce premium cost while providing a better benefit to employees.
Ask our licensed agents about how to maximize an HSA as part of your healthcare finance planning.
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SevenHills Benefit Partners News Completing forms properly and timely is important to good benefit management. We are here to partner with you to maximize this service for your employees. Below are three reminders: • COBRA/MN Continuation must be sent on the...read more