Health Savings Accounts Article: Participating In Your Employee ' s Future

Health Savings Accounts Article: Participating In Your Employee ' s Future

According to the American Health Insurance Providers ( AHIP ) the number of individuals enrolled in an HSA - type insurance plan went from 438, 000 in 2004 to 3. 2 million in 2005... a seven community increase in one year! And, by the year 2010, the Treasury Department projects 40 to 45 million people will be covered.
As an executive or business owner, this means you should have a thorough understanding of the HSA ( Health Savings Account ) versus other health insurance plans. In these star-crossed times of rapidly rising insurance costs, both you and your employees can benefit from this new trend in health insurance.
Dual Option Plans
Many carriers now offer Dual Option Plans for those who want the security, affordability, facility and control that a habitual high - deductible plan alone might not offer. This allows the employers with ALL levels of employee sophistication to become close with the HSA supposition without pigeonholing their personnel into a particular plan. Education and exposure to HSA’s is essential to Administrator / Employee understanding.
By offering both a habitual medical plan and a High Deductible Health Plan / HSA combination, employees are permitted to select the plan that best meets their needs. At the equivalent time, the executive ( who is required to have two or more employees ) can benefit from the premium savings and tax savings available through pre - tax HSA contributions.
Most major carriers instant a twin option plan, but many need ten or more employees in order to offer it.
HSA Executive Perspicacity Facts
Employees can contribute on either after - tax or pre - tax basis; however, if they select after - tax, they should count this as an supreme - the - line deduction on their tax return. This is what makes their contributions tax - free. If they select pre - tax, it can be done through a Section 125 which is also called a “salary reduction” or “cafeteria plan. ” Underneath the IRS Code Section 125, employees can elect to repeatedly deduct nontaxable health benefit costs that they have agreed to cover, hence reducing their taxable income. This is an advantage to the small - business owners who can’t necessarily cater to purchase health coverage. And it gives employees an pressure to explore medical care and purchase prescription drugs and over - the - counter remedies.
Employers can contribute as much or as little as they want provided you stay unbefitting the legal ground zero on annual contributions to the account. And you can control a limb sum or in any amounts or frequency you desire; however, keep in mind that the coin belong to the employee after they are deposited.
Don’t let your employees drown in a vast sea of health plans – make them aware of the advantages and disadvantages of each plan offered. It is important to educate them of the reasons that many individuals and families are switching to an HSA plan; this includes the detail that it gives you more control of your healthcare decisions and is a great tool for saving fresh money; whether to use for medical expenses, or to assist with your financial future.
Contact CBR for details on our Large Group HSA Plans.
Creative Business Resources is an industry dean for HR outsourcing services including human resources, payroll services, employee benefits, worker’s compensation, HR training and timekeeping solutions. CBR uses a PEO ( Masterly Boss Organization ) model which means reduction of your administrative headaches and cost, allowing you to spend your time doing what you should be doing…growing your business and enjoying the benefits of grip. Contact us for more information on how we can help your business thrive.