HEALTH SAVINGS ACCOUNT ENROLLMENT
Employer enrollment benefits:
*Lower insurance premiums. Moving to a HDHP/HSA can help your company save on health insurance premiums without sacrificing quality on employee coverage, because HDHPs are often more cost-effective than traditional health plans.
*FICA savings. When employees contribute to their HSAs pre-tax, the IRS doesn’t consider those contributions wages. That means the employee and the employer both don’t have to pay FICA taxes on them. That’s an extra 7.65% back for both the employer and employee.
*Lower annual premium increases. As your employees take ownership over their health and become more involved healthcare consumers, you can see lower increases on annual premiums.
*Improved employee retention. Lack of benefits can be a major reason why employees leave jobs. Because HDHPs/HSAs can help your employees save money and invest for the future, they’re a great addition to any benefits package.
Individual enrollment benefits:
*Potential HSA eligibility. HSAs are the best medical savings vehicle on the market. Once they’re enrolled in an HDHP, eligible individuals can start making HSA contributions and take advantage of their unmatched tax benefits.
*Lower monthly premiums. HDHPs often have lower monthly premiums than traditional health plans. This allows employees to save money each month on their health insurance premiums.
*Ability to roll over funds and change contribution levels. Unlike FSAs, HSAs don’t have “use-it-or-lose it” limits, so individuals don’t have to spend funds in a given year. Also, individuals can change their HSA contribution levels as often as they like.
*Tax-free savings for retirement healthcare costs. With HSAs, individuals have the option to invest funds and let them grow long-term to cover medical expenses in retirement.
HEALTH SAVINGS ACCOUNT vs FLEXIBLE SPENDING ACCOUNT