If your employees are covered by a high-deductible health plan (HDHP), you can offer them an employer-sponsored HSA. Employees use this tax-advantaged savings account to cover qualified medical expenses – from co-payments at the doctor’s office to pharmacy bills, dental care, vision care and more.


How HSAs Work

A health savings account, paired with an HSA-qualified health plan, allows members and employers to make pre-tax* contributions to an federally-insured account that can be used to pay for qualified medical expenses. Contributions made by you or your members through payroll deductions result in FICA** and income tax savings. HSA balances earn tax-free interest and roll over from year to year. HSA-qualified health plans typically cost less than traditional plans and the money saved can be contributed into an HSA for immediate use or long-term savings.

Why Offer HSAs?

Maximize benefits offerings

In today’s competitive job market, attractive benefit packages are essential to securing key talent. An HSA-qualified health plan, supplemented with employer HSA contributions, maximizes benefits offerings while maintaining cost control.

HSA funds never expire

Unlike flexible spending accounts (FSAs), all remaining HSA funds roll over each year and are available for qualified healthcare expenses even if an employee changes health plans, retires or leaves a company.

COBRA and Medicare premiums

Your HSA dollars can be used to cover COBRA and Medicare premiums. This makes the HSA an even more valuable tool to save for future medical expenses.

A sure win healthcare reform

HSA-qualified plans are an effective way to help ensure compliance with the Patient Protection and Affordable Care Act (PPACA) and avoid expensive ‘Cadillac-tax’ penalties.***

HSAs empower health savings

By offering an HSA-qualified health plan, you enable your employees to make savvy financial decisions and save for future healthcare expenses.

 

*HSA contributions are also exempted from FICA and FUTA.

**HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

***'Cadillac tax' is an excise tax imposed on employers who provide high dollar value benefits starting in 2018. Consult your tax advisor as to its applications.

Get Started

For more information or to enroll, please call Customer Service at (518) 885-6781, visit a BSNB location or learn more here.

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