Health Savings Accounts
Health Savings Accounts (HSA) allow individuals to put aside money in to a tax-preferred account to use for medical expenses. HSA's must be offered in conjunction with a qualified high deductible plan. Employers can contribute towards their employees HSA and employees can contribute in conjunction with employer contributions.
Money not used in an HSA remains in the HSA without tax consequences. Money put in to an individual's HSA by their employer is not considered taxable income to the employee. HSA offerings are different than plans with co pays as HSA plans do not generally have copays.
HSA offerings usually cost much less than a plan with copays and the lower cost is a big part of the appeal that employers and individuals see.
Give us a call to learn more about HSA plans.