Health Savings Accounts — HSA Plans, Coverage & Quotes
What is a HSA plan? It is a Health Savings Account that allows you and your employees to save money on their group health insurance. HSA health plans consist of tax-exempt savings accounts that are used for medical expenses. There is no federal income tax imposed on deposits, and employers are also allowed to deposit funds (similar to a 401K plan). HSA plans offer the greatest level of freedom, since there is no gatekeeper standing in the way of your health care. The HSA is combined with a high deductible plan; this results in lower premiums. HSA insurance plans have the potential to save you money on medical expenses, since approved withdrawals aren’t penalized.
What do HSA health plans cover? These accounts can be used to pay for almost all legitimate medical expenses: co-payments and co-insurance amounts for hospital stays and doctor visits are included, as well as both prescription and approved over-the-counter medications. A lot of common first aid supplies, such as Band-Aids, even qualify under an HSA insurance plan. After establishing a HSA health insurance plan, employees will receive a debit card that can be used in most medical offices, hospitals, and pharmacies that accept major credit cards. They will also be able to file a claim to get reimbursed if they forget to use their HSA debit card on an eligible purchase.
Many employers already offer a health savings account plan to their employees, and that percentage is increasing. Some employers contribute to HSA plans, in addition to or in lieu of subsidizing other forms of health insurance. Individuals can also sign up for a HSA insurance plan themselves. One of the main advantages of HSA plans is that the money in the account rolls over from year to year. What’s more, it also earns interest. Having an HSA plan encourages your employees to save for medical expenses and take control of their health care by shopping around. It can result in significant savings for you on business health insurance. In most cases, HSAs are combined with a high deductible health insurance plan. What qualifies as a high-deductible small business health insurance plan? Health savings account plans that have an annual deductible of $1,100 or more for individuals qualify. Total out-of-pocket expenses per individual cannot go above $5,500 per year under an HSA health plan. Most non-emergency medical expenses should be paid for by the tax-free HSA plan, as opposed to your taxable income. Therefore, a HSA serves as an increased benefit, above and beyond salary.
HSA insurance plans best suited for for younger, healthier workforces that use less health care services. The savings on HSA health insurance premiums will probably outweigh the increase in out-of-pocket expenses. Employees who are older or who have pre-existing conditions may find that most HSA plans don’t fit their needs, although you can offer several options of small group health insurance.
VitalOne is here to help you select among our selection of health savings accounts and high-deductible group health insurance plans. Our licensed small business health insurance agents are here to help you select the combination of HSA health insurance plans that caters to your needs as an employer.