Health Savings Accounts

The number one advantage of offering an HSA is that it makes employees happy. Employees like have options and control when it comes to their medical expenses, and the HSA offers that.

HSAs are employee-owned accounts that can be used to pay for health care expenses. Like an IRA, the funds can be kept as cash or invested into funds. Unlike a Health Reimbursement Account, the account is owned by the employee, and is not affected by termination of employment. Both employeers and employees anc contribute to the account, and unused amounts roll over from year to year.

Beyond happy employees, HSAs can also help save you money. Health plans with an HSA are generally less expensive than other group health plans, and reduce taxes as contributions are treated as deductible.


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