4 Reasons to Offer Health Savings Accounts to Your Employees
If you’ve enrolled your employees in a healthcare plan, you’re offf to a great start. There’s no doubt they appreciate the coverage. But if you’ve opted for a high-deductible, low-premium plan, your workers might experience some trouble with their share of healthcare expenses. A health savings account can be the answer to this dilemma.
A health savings account (HSA) allows your employees to set aside funds to pay for their deductible and other out-of-pocket expenses. This way, large medical bills won’t feel like such a burden. But there are certain other benefits to an HSA, such as…
Tax benefits. Since money is contribute to the account on a pre-tax basis, saving with an HSA essentially lowers taxable income for the year. This allows your employees to save on their income taxes while also establishing savings to handle medical expenses.
A generous contribution limit. In 2022, the HSA contribution limit is $3,650 for individuals, and $7,300 for family coverage. That’s quite a reduction in taxable income, plus it allows for individuals and families to save a substantial amount toward their medical bills.
Matching contributions. As an employer, you’re allowed to make matching contributions to employee HSAs. This allows you to provide a valuable benefit to attract new talent and retain current workers.
Portability. Health savings accounts stay with the employee, so they can take it with them if they change employers. And unused funds roll over each year, all the way into retirement. At that point the money can be used for Medicare premiums or uncovered medical expenses, so an HSA can essentially function as another type of retirement savings vehicle. Your employees can make contributions without any worries of losing the money.
To learn more about health savings accounts and how establishing this benefit can help your company, give us a call. One of our health insurance professionals can walk you through the basics and help you decide if this valuable benefit is right for your company.