There are numerous insurance policies that we can weave together for your employees struggling with their health, but what about your active, healthy employees that just want a simple plan for routine medical costs?
A Health Savings Account (HSA) can replace high cost, low deductible health insurance policies that are too expensive for many Americans … and often too much insurance for someone that is healthy and young.
Your employees would make pre-tax contributions from each paycheck to their HSA that acts as a fund to pay for medical costs incurred during the year. An HSA can also be used to supplement retirement if you are healthy because the money can stay in the account and grow with tax advantages.
Who is eligible for a Health Savings Account?
In order to utilize a Health Savings Account, an individual must be covered by an HSA-qualified High Deductible Health Plan (HDHP) and NOT covered by other health insurance that is not an HDHP. There are certain types of insurance that will not harm your eligibility for an HSA, so give our team a call to discuss your options. Additionally, you must not be covered by Medicare and not be a dependent on someone else’s tax return.
Does the HDHP need to be in my name in order for me to have an HSA? What if the HDHP is in my spouse’s name?
No, as long as you are covered under an HDHP policy, you will be eligible for an HSA (assuming you meet the other eligibility requirements). You can still be eligible for an HSA even if your spouse is the main HDHP policy holder.
Can I use the money in my Health Savings Account to pay for the medical care of a family member?
Yes, you can withdraw funds to pay for the qualified medical expenses of yourself, your spouse or a dependent in your care without the pressure of a major tax penalty. This is one of the great advantages of an HSA!