Our economy is changing, the healthcare industry is changing, and
the health insurance industry is changing to reflect these trends.
Health Savings Accounts (HSAs), combined with high deductible
insurance has become not only popular but commonplace as health
insurance premiums increase. Money previously spent on higher
premiums are now funneled into the employee-owned HSAs to pay
out-of-pocket medical expenses until the higher deductible is
reached. HSAs are funded with payroll-deducted pretax dollars,
providing a tax saving to both employer and employee.
Employers benefit by providing this type insurance; contributing to
both the employee’s HSA & insurance premium, you can still pay less
than what the older, more traditional types of coverage would cost.
Since high-deductible insurance does not provide coverage until the
stated deductible is reached, the insurance premium is much lower
than the more common HMO & PPO coverage available.
Employees benefit too. While it takes a little to get used to, it
feels good to have more control over your healthcare and healthcare
costs. And many HSAs provide prepaid Visa/MasterCard Debit Cards
which make HSA spending and expense tracking easy and
straightforward. Your employees can use the debit card at the
doctor's office & drugstores for not only prescriptions but
also over-the-counter qualifying healthcare purchases (aspiring,
allergy medicines, bandages, etc.).... all with pretax dollars.
Plus, unused HSA dollars can carry forward to next year.
Please keep in mind that many plans differ in coverage. You'll
want to match your HSA contributions to the annual deductible of the
companion policy. Call Carole Shaffer at The Shaffer Group -
877.286.1359, Ext. 1041 for more information and a comparative quote
from multiple insurance companies.