Now May be the Time to Consider Offering an HSA!

November 12, 2007

With health care costs spiraling out of control and higher medical and prescription costs, you may find yourself looking for ways to help your clients offset these rising costs. One way may be to offer a qualified high deductible health plan, coupled with a Health Savings Account (HSA), providing an affordable solution for both employers and employees.

HSAs offer several tax advantages to employers as well as employees. By using a cafeteria plan, employers pay no FICA taxes on employees' HSA contributions. Employees have several tax advantages also. Their contributions are tax free and so are any earnings. Distributions used to pay for out-of-pocket medical expenses are also tax free, whether used now or later in the retirement years.

Not only can an HSA help offset today's expenses, but studies have shown that American couples who retire today at age 65 will need over $215,000 to pay for premiums and out-of-pocket medical expenses throughout their retirement. Help your clients give their employees an incentive to control health care costs and better prepare for retirement.

From an employee perspective, probably the best thing about HSAs is that they own the account. It is fully portable. This is also one of the positives from an employer perspective. Employee HSA ownership means no more worries about claims adjudication and increased employee responsibility for controlling health care costs.

To learn more about how an Infinisource HSA allows employees to invest in their future by shaping solutions in the health care challenges of today and tomorrow, contact us today at 800-779-6384 or e-mail us at solutions@infinisource.net.