Health Savings Accounts

Health Insurance Premiums continue to rise, making it tougher and tougher on small businesses to provide Health Insurance Coverage for their employees. High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs) may provide your small business a way to reduce costs while minimizing the corresponding changes to your employees’ health care benefits.

What is a Health Savings Account?

HSAs allow employers and individuals to contribute pre-tax dollars for future medical expenses. The use of a HDHP is required to participate in HSAs. You will need to contact your insurance professional and/or accountant to see if the coverage you currently provide qualifies.

Why Change?

• Reduced health insurance premiums
• Tax savings for employees via HSAs
• Competitive edge to attract/retain employees
• No fees, no minimum balance to maintain
• FDIC insured

Facts to Know

• Tax–sheltered form of compensation.
• Employer contributions made on behalf of an employee are deducted on the employer’s federal business income tax return for the year in which they are made.
• An HSA is owned and controlled by the employee. It is portable, meaning it goes with the employee if they leave the company.
• Employer HSA contribution must be made in the same dollar amount or the same percentage of the employee’s deductible for all employees in the same “class”

Contact your local branch today to discuss how an HSA can benefit your business.

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