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Employer Information
Health Savings Accounts are growing
in popularity, providing traditional coverage through unconventional
means. Health Savings Accounts and High Deductible Insurance Polices
focus on the consumer and the need for flexibility. With increased
accessibility to coupled insurance plans many employers are offering
enrollment options in Health Savings Accounts to their employees. Health
Savings Accounts are transforming the American health care system.
Health Savings Accounts are allowing Individual policyholders and
employers the opportunity to move away from traditional models of
insurance coverage that dominate health care transactions. Health
Savings Accounts enable transactions between patient and physician in
which the patient has control over how the dollars are spent. By
offering Health Savings Accounts to your employees you are offering a
policy that is rich in opportunity.
In short Health Savings Accounts
are portable accounts that allow individuals to deposit money into their
Health Savings Account on a tax free basis. The funds within the Health
Savings Account can be withdrawn tax free to pay for qualified medical
expenses including preventive care, health insurance deductibles,
qualified premiums, prescription drugs, over the counter medications as
well as long term care services. The High Deductible Health Insurance
plans provide coverage for potential catastrophic medical expenses. It
is the purpose of Health Savings Accounts to provide individuals with
information rich resources that will enable them to make informed
decisions regarding their health care, health treatment and health
management options.
With more and more individuals
seeking control over health care decisions, employers looking to
contribute to Health Savings Accounts should understand how it would
work on their end. When making a deposit into an employee Health Savings
Account that amount is excluded from the employee’s income. Should the
employer not provide health insurance but those employed hold Health
Savings Accounts, the employer can make pretax contributions to the
employees’ Health Savings Accounts. The total annual employer-employee
contributions made to the Health Savings Account may amount to as much
as one-hundred percent of the HSA health plan's annual deductible amount
and can be used to cover any and all qualified medical expenses.
Contributions made to an individual’s Health Savings Account are tax
deductible to the employer. If an employer is making contributions into
Health Savings Accounts it must be made in equal part to all employees.
Health Savings
Account provide comprehensive coverage for those enrolled and also offer
great incentives to the employer who offers this up and coming health
insurance option.
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