HSA (Health Savings Account)
Now PeoplesChoice Credit Union is offering members or members with employees the chance to participate in our new HSA program. Both employees and employers can benefit from what these innovative health savings accounts have to offer.
How will it work?
Offering a health savings account-compatible health plan may better benefit your employees — and your business.
The increasing cost of health care is becoming a financial burden for many employers and employees. As an alternative, some individuals are seeking a low-cost, low premium health plan option that, at a minimum, gives protection against high medical bills. Adding a health saving account (HSA)-compatible health plan to your benefits package may be just what your employees are looking for!
HSA’s are savings tools with many features similar to IRA’s, but give your employees the opportunity to pay their medical expenses with tax-free money. Employees generally are eligible for an HSA if they are covered by a high deductible health plan (HDHP), not covered by any other health plan (with limited exceptions), not enrolled in Medicare and not eligible to be claimed as a dependent on another person’s tax return.
Employer Benefits of HSA Plans
Reduced Premiums - you can reduce your insurance premiums substantially by switching to an HSA-qualified high-deductible health plan.
Lower Fixed Costs of Health Insurance Plan - 2 Components of the plan; premium and account funding can be decided independently, and reviewed annually
Deliver more Benefit Dollars to Employees - Instead of paying 100% of insurance dollars to a carrier, you can deliver some of those dollars directly to employees by funding the account.
Provide Incentives to Employees to Get Involved with Healthcare Decisions - by re-allocating insurance premium dollars to individual accounts, individuals have incentives to get involved with the process and get the biggest bang for their buck.
Tax savings - your contributions to the HSA are made with pre-tax dollars.
Employee Benefits of HSA Plans
Control - you can use the HSA to pay for any qualified medical expense, as defined by the IRS. There's no need for preauthorization of services, unless explicitly stated by the plan.
Savings and Investments - unlike premiums, unused HSA dollars remain in the HSA until you use them later.
Flexibility - “Health Care” dollars can pay for items identified by the health insurance plan, but also a much broader definition as defined by the IRS which includes dental, vision, orthodontia, over the counter medicine and others (not all of these are applied to deductible) these may be things individuals are currently routinely paying for using post-tax dollars.
Portability - if you leave your current employer, you can take your HSA (the account) with you.
Tax savings - your contributions to the HSA are made with pre-tax dollars, so individuals will lower income taxes.
No Use-it-or-lose-it - balances roll from year to year, so you don't need a crystal ball to forecast medical expenses in the next year