HSA’s – Good for Employees and Employers
Filed Under (HSA - Health Savings Accounts) by Group Health Insurance on 05-11-2009
Tags: employer hsa, Health Savings Accounts, HSA, hsa account, hsa accounts, hsa contribution, hsa health, hsa health insurance, hsa health savings, hsa medical, hsa plan, hsa plans, hsa savings, HSA-qualified health plans
HSA's Save You Money
If you are considering an HSA plan for your group insurance benefits, you will be encouraged by the results of two separate surveys.
The surveys, conducted by Buck Consultants, an independent subsidiary of ACS, were conducted this past spring. Results show that employers and account holders are satisfied with the coverage they got by using Health Savings Accounts (HSAs) and HSA-qualified health plans. They feel that they can better control costs and so are spending less, thus saving for potential future medical expenses. They believe that they are more involved in managing their health benefits.
The highlights of the results of the surveys are:
> 84% of account holders said their HSA-qualified plans are affordable.
> 72% of account holders said they pay the same or less than with a traditional type of health plan.
> After moving to an HSA, more than half of account holders said they more closely monitor their health care costs. Forty-eight percent read their medical bills more closely than when they did not have an HSA, 46 percent have a better understanding of where their money goes, and approximately 40 percent more closely evaluate costs before electing medical services.
> 81% of account holders said the ability to personally control health care costs is an important factor that caused them to select an HSA.
> Of the employers offering HSAs for more than three years, 86 percent indicated that plan costs were the same or less than the previous year.
> 96% of employers claimed that HSAs allow the company to continue offering group-sponsored health insurance.
HSAs can reduce employer health care costs almost immediately, and because the deductible is higher, the premiums are lower for the employees than those of more traditional plans.
Here is an overview of the benefits of enrolling in an HSA:
> HSA contributions are tax-free, account interest accumulates tax-free, and dollars spent on qualified medical expenses are tax-free.
> HSA dollars can be used for current qualified health care expenses, including co- pays, deductibles, and doctor and hospital visits, and can also be saved for future expenses, such as Medicare premiums, on a tax-free basis.
> HSAs can provide account holders with a valuable source of retirement income alongside a 401(k) and Individual Retirement Account (IRA) if the account holders.
If you haven’t yet signed up for an HSA for your group, call your insurance agent today to discuss how an HSA can benefit you and your employees.
