There is a new way to control healthcare costs: a Health Savings Account (HSA). With a HSA, individual employees can reduce their health insurance costs, create tax savings, and better understand their true costs of healthcare.
HSAs are federally approved savings accounts which may be offered only in conjunction with high-deductible health plans. With HSAs, employers and qualified employees may make tax-free payroll contributions to pay for certain out-of-pocket medical expenses. These funds are received tax-free by employees and the contributions are tax deductible for the employers. With the funds deposited into a selected custodial account, the employee simply requests reimbursement from said account to pay for the qualified expenses.
Benefits for Employers:
For employers, empowHR’s HSA creates huge tax advantage. Hidden fees and risks associated with the reimbursement process are eliminated. Furthermore, through a high deductible plan, employers can reduce health insurance costs. With an HSA, employers have the ability to provide employees with more control over their healthcare.
■ Employers determine fund management guidelines, including contribution amounts and carry-over opportunities.
■ Employers define when funds in the HRA are available for reimbursement, and what types of medical expenses qualify for reimbursement.
Benefits for Employees:
empowHR’s HSA allows employees to increase take-home pay. Tax-free interest means tax-free growth of tax-deductible deposits in the HSA. Employees no longer need to substantiate reimbursement requests through a third party. With empowHR’s HSA, account deposits and interest are retained regardless of employment status. Overall, employees will increase their understanding of the true cost of healthcare. empowHR offers multiple HSA options depending on your need.
■ Employees benefit from an employer-funded, employer-tax-advantaged health reimbursement account (HRA)
■ Get 100% coverage for in-network preventive care
■ Choose from a variety of cost-effective health and wellness services
■ HSA plan balances are displayed in real-time on empowHR’s Financial dashboard