Employers and their employees are selecting health savings accounts (HSAs) in increasing numbers, according to Kathryn Mayer of BenefitsPro. These accounts have several benefits for consumers:
- Funds contributed are not subject to federal income tax at the time of deposit, and may be used to pay for qualified medical expenses at any time without federal tax liability or penalty.
- Funds roll over and accumulate from year to year if not spent.
Effectively, HSAs, coupled with high-deductible health plans, enable consumers to pay for their healthcare with pre-tax dollars, and exercise a greater degree of planning and control over their care.
For this reason, we recommend that you offer HSAs as part of your benefits mix. 40% of Century II's clients already do!
To evaluate how an HSA would enhance your benefits plan, email Century II at firstname.lastname@example.org.