8 Ways HSAs Benefit Both Employers & Employees
A high deductible health plan (HDHP) paired with an HSA can help organizations cut costs while also providing their employees best-in-market tax savings on medical expenses.
Here are 8 reasons why HDHPs and HSAs benefit both employers and employees.
Lower insurance premiums. Moving to a HDHP/HSA allows your company to save on health insurance premiums without sacrificing quality on employee coverage.
FICA savings. When employees contribute to their HSAs pre-tax, the IRS doesn’t consider those contributions wages. That means the employee and the employer both don’t have to pay FICA taxes on them.
Lower annual premium increases. As your employees take ownership over their health and become more involved healthcare consumers, you’ll see lower increases on annual premiums.
Improved employee retention. Lack of benefits is a major reason why employees leave jobs. Because HDHPs/HSAs can help your employees save money and invest for the future, they’re a great addition to any benefits package.
Potential HSA eligibility. HSAs are the best medical savings vehicle on the market. Once they’re enrolled on a HDHP, eligible employees can open HSAs and start taking advantage of their unmatched tax benefits.
Lower monthly premiums. Instead of paying high monthly premiums for coverage they may not use, HDHPs can save employees hundreds of dollars each month in lower premiums.
Tax-free savings for retirement healthcare costs. With HSAs, employees have the option to invest funds and let them grow long-term to cover medical expenses in retirement.
Ability to roll over funds and change contribution levels. Unlike FSAs, HSAs don’t have “use-it-or-lose it” limits, so employees don’t have to spend funds in a given year. Also, employees can change their HSA contribution levels as often as you, the employer, allow.
See how much you’ll save
Our employer cost savings calculator can help you estimate how much you’ll save with a HDHP and HSAs for your employees.
Our healthcare plan comparison calculator can help you compare HDHP costs against a traditional healthcare plan.
Is your organization currently on an HDHP and looking for an HSA provider? See why HealthSavings is the hands-down choice or call us at 1-888-354-0697 to get started with enrollment.