Health Savings Accounts (HSAs) are a valuable part of an employee benefits package. To keep group medical plans costs under control, many employers are offering high deductible health plans. Combining those plans with an HSA offers employees a tax-benefical way to save for those high-deductibles, as well as other qualified medical expenses.
HSAs are funded with pre-tax dollars by either an employee, an employer or a mixture of both. The employee has control over how the money is spent, and unused funds can roll over into the next year. It is up to the insured to understand the rules of HSAs to make sure the funds are used appropriately. LifeHealthPro recently published a blog post covering the ins and outs of HSAs in great detail for those who would like to know the specifics of the accounts.
Understanding exactly what constitutes a “qualified expense” can help employees make the most out of their HSA. LifeHealthPro uncovered some often overlooked HSA qualified expenses, including: over-the-counter drugs; vitamins and nutritional supplements; over-the-counter non-drug supplies; gym memberships, weight-loss programs, and stress reduction services; cost of travel for medical treatment; certain cosmetic surgeries; accessibility-related modifications to your home; and long-term care insurance, COBRA premiums and other insurance coverages.
If you are faced with offering a high deductible health plan for your employees, you may want to consider implementing an HSA as well. Send us an email or give us a call for more information on the process and the benefits of these programs.