Health Savings Accounts

Health Savings Accounts (HSAs) are a relatively new and still evolving feature of the benefits landscape. Like a 401 (K) plan, each employee can put money into an HSA on a tax-deductible and tax-deferred basis, and the money can be used to cover un-reimbursed medical expenses.

Unlike the old Flexible Spending Accounts (FSAs) for medical expenses, HSAs are not “use it or lose it” accounts. Money set aside in an HSA that is not spent on medical expenses remains the employee’s and can continue to grow in a variety of investment vehicles.

HSAs aren’t right for everyone, but they can be a useful tool, in conjunction with a high-deductible medical plan, for controlling costs, both for the employee and the employer.

For more information about Health Savings Accounts and whether or not they make sense for your business, call us at (800) 426-2413.

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