What Do I Need to Get a HSA Program For My Small Business?

Testimonials in support of HSAs are popping up everywhere these days. And for good reason: HSA programs could really be the solution to the spiraling cost of healthcare.

Are you struggling to keep up with health premium hikes? Trying to find a way to maintain a comprehensive health plan for your employees? A Health Savings Account could be the answer you’ve been looking for.

Get the Best for Your Small Business with an HSA Program

The HSA Account can be an especially effective healthcare tool because it puts you (rather than your insurance company) back in the driver’s seat when it comes to healthcare.

6 Steps for a Small Business Health Savings Account

1. Buy a qualifying high deductible health insurance plan. Keep in mind that the higher the deductible (the amount of medical expenses your employees pay for each year before the insurance covers their costs), the lower its’ premium (your employee’s monthly payment) will be.

2. Establish a Health Savings Account plan with a qualified HSA bank or custodian.

3. Facilitate your employees’ contributions. Arrange for your employees to set aside up to 100% of the plan’s deductible (subject to maximum contribution limits) then deposit it into their HSAs.

4. Make sure your employees get the most out of the HSA. Have your employees claim the federal tax deduction for their contributions, thereby reducing their annual taxable income and once again, keeping more in their own pockets.

5. Take advantage of tax breaks. Your employees will be able to use the cash in their HSA Savings Account to pay for any qualified medical expenses they incur, tax-free.

6. Employees keep the savings. Whatever’s left in the HSA at the end of each year will stay in the HSA Account (the money belongs to your employees), and can be rolled over to pay for their future medical expenses.