A Health Savings Account (HSA) is one of the most powerful consumer-driven healthcare tools available. HSAs provide a triple tax advantage by allowing employees to contribute pre-tax dollars, grow their money tax-free through investment, and withdraw the funds tax-free to pay for qualified medical expenses.

HSAs are paired with high-deductible health plans (HDHPs) that meet IRS requirements for minimum deductibles and out-of-pocket maximums. For 2024, the minimum deductible is $1,600 for self-only coverage and $3,200 for family coverage.

Key Benefits of HSAs:

• Contributions are 100% tax-deductible from gross income
• Money grows tax-deferred through investment options
• Tax-free withdrawals for qualified medical expenses
• Unused funds roll over each year with no caps
• Accounts are portable, staying with employees even if they change jobs
• HSAs can be used to pay Medicare premiums in retirement

According to the Kaiser Family Foundation’s 2022 Employer Health Benefits Survey, 28% of covered workers were enrolled in an HDHP/HSA in 2022, up from just 4% in 2006. For large employers with 200+ workers, the percentage was even higher at 34%.

HSAs Help Employers and Employees Save 

HSAs reduce payroll taxes for both employers and employees on contributed funds. They also allow companies to offer lower-premium HDHPs and define a fixed contribution amount, helping to control healthcare costs. For employees, HSAs increase tax savings and take-home pay while providing a way to save for future medical expenses.

BenefitsDNA’s can help put together a robust HDHP/HSA Plan for your business that provides the right level of coverage at the lowest possible cost. We’ll conduct an in-depth financial analysis, model multiple plan designs, and recommend a customized solution that meets your budget and benefits goals.

Services include:

• HDHP/HSA plan benchmarking and design
• HSA employee education and communications
• HSA investment integration and guidance
• Compliance review to meet all HSA/HDHP rules
• Ongoing plan monitoring and analysis

Contact us today to learn how an HSA program can significantly reduce healthcare costs for your organization while providing a valuable tax-advantaged benefit for employees.