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How do employers benefit from high deductible health plans (HDHPs) and HSAs?
Lower insurance premiums
Moving to a HDHP/HSA allows your company to save on health insurance premiums without sacrificing quality on employee coverage.
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 those contributions.
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.
How do employees benefit from HDHPs and HSAs?
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 unparalleled 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.
EMPLOYER COST SAVINGS CALCULATOR
Estimate how much you’ll save with an HDHP and HSAs for your employees.