A health savings account (HSA) is a type of savings account that allows individuals to set aside money on a pre-tax basis to pay for qualified medical expenses. HSAs are typically available to individuals who are enrolled in high-deductible health plans (HDHPs), which are health insurance plans that have lower monthly premiums but higher out-of-pocket costs.
An HSA can be used to pay for a wide range of healthcare expenses, including deductibles, copayments, and coinsurance. Funds in an HSA can also be used to pay for qualified medical expenses that are not covered by insurance, such as vision and dental care.
Employers may offer HSAs to their employees as a way to help them save money on healthcare expenses. By contributing to an HSA on behalf of their employees, employers can help their employees pay for qualified medical expenses and reduce their out-of-pocket costs. Additionally, because contributions to an HSA are made on a pre-tax basis, both employers and employees can save on taxes.
Offering an HSA can also be a way for employers to attract and retain employees. HSAs are often seen as a valuable benefit because they provide employees with a way to save money on healthcare expenses, which can be a significant cost for many individuals and families.
For assistance with an HSA for your organization, reach out to our expert team and we’ll guide you through the implementation of an HSA plan.
