Will Health Savings Accounts be Right for My Employees?

The health savings account (HSA) was born back on December 8, 2003 as a kind of second generation medical savings account (MSA) plan. Certain aspects of this new program mirror the old, but there are some important differences that are making HSAs more popular than MSAs ever were.

But popularity isn’t everything, and not everyone who can take advantage of an HSA should enroll in one. Health savings accounts can be demanding. To benefit the most from them, your employees will have to take an active role in managing their plans on their own.

Health Savings Accounts – A New Answer to an Old Problem

HSAs encourage participants to try out a new way of tackling an old problem—funding healthcare. With HSAs there are no co-insurance rates or co-pays. And unlike traditional health plans, HSAs are only available if paired with a high deductible health plan.

Choosing a Health Savings Account for Your Employees

Here at HSA Pros we’ve noticed there are some things employees who are happy with their HSA Accounts have in common.

As you consider an HSA for your business, ask, “Would my employees”

• Not mind the risks of having a high deductible health plan?
• Prefer lower health insurance premiums?
• Like to reduce their federal income taxes?
• Have the discipline to make independent contributions to their HSA Accounts?
• Be willing to pay for their smaller medical bills?
• Be interested in saving additional tax-advantaged money for their retirement?
• Prefer a few added responsibilities to over-paying for a traditional health insurance plan?