Benefits of Offering Health Savings Accounts to Employees
By Tom Cleary
Health savings accounts (HSA’s) have become more popular in recent years. As healthcare costs have risen, HSA’s have become a common way of managing these costs. If your small business is considering these helpful accounts, these are some of their benefits.
Health Savings Accounts Help Lower Healthcare Costs.
As costs from health plans have increased, more employers have moved to plans with a higher deductible. Offering an HSA to accompany these plans allows employees to save money. With an HSA, employees are allowed to put money in tax-free. In addition, the money can grow tax-free and be taken out for eligible medical expenses tax-free as well. Even HSA’s that are completely employee-funded have these tax advantages. An employer may also choose to contribute a fixed amount in the account rather than purchasing a pricey health insurance plan.
Health Savings Accounts Promote a Proactive Approach to Employee Health.
Because an HSA gives the employee more control, employees with an HSA will tend to be more careful about healthcare spending. While this can have some negative consequences, it can also have positive ones. Employees will value their healthcare more if they are actually contributing to it. They will tend to be more proactive in looking for answers to their healthcare issues.
Health Savings Accounts Require Little Administration.
Some other accounts, such as FSA’s or HRA’s, have more administration that is associated with them. However, HSA’s do not put much of an administrative burden on employers. Aside from the time that it takes to set up the account, there is really no administrative upkeep required for HSA’s.
Health Savings Accounts Assist in Getting and Keeping Good Employees.
Everyone is looking for the top talent. Often it is the benefits that will ultimately sway someone to take a job. By enabling employees to have more control over their healthcare dollars and enjoy tax-free savings, HSA’s can be a value-added benefit. They are especially good for smaller businesses that can not provide expensive health insurance.
If you need assistance in getting a health savings account set up for your small business, we can help. Come in and talk with me or any of our branch managers. We will help you to encourage your employees to be healthy and smart in managing healthcare costs.
