A Health Savings Account, or HSA, helps combat increases in health insurance costs for those willing to take personal control of their medical expenses.

Employee Benefits

• Account Ownership
  Funds are portable in the case of a change in employers.
  
  
• Security
  Your high deductible insurance and HSA protect you against high or unexpected medical bills.
  
  
• Flexibility in Funding
  Contributions may be made by the employer, the employee, or any other person or nonperson (charity, etc.) up to your maximum contribution limit.
  
  
• Tax-Free Savings
  Unused funds can roll over into the next plan year or be saved for retirement.
  
  
• Contribution allowance
  Contributions can be made for the prior tax year until April 15th of the following year. Your contribution limit is determined by your qualifying HDHP.
  
  
• Tax Deductible Contributions
  Contributions to your HSA (that are not from your employer) are tax deductible.
  
  
• Tax-Free Earnings
  Interest earned on the account will accrue tax-free within the HSA.
  
  
• Tax-Free Withdrawals
  Funds used for qualified medical expenses will not be taxed upon withdrawal.
  
  
• Catch up Contributions
  If you are age 55 or older you can also make additional catch up contributions.

Employer Benefits

• Reduced Premiums
  Many businesses can substantially reduce their insurance premiums by switching to an HSA qualified HDHP.
  
  
• Lower Fixed Costs
  Allows control of two plan components, premium and account funding, to be decided independently and reviewed annually.
  
  
• More benefit dollars to employees
  Ability to deliver insurance dollars directly to employees by funding the account rather than paying 100% to the insurance carrier.
  
  
• Incentives for Employees
  The reallocation of premium dollars to the HSA will create an incentive for employees to take control of their health care expenses.
  
  
• Tax Savings
  Contributions to employee HSA accounts are tax deductible for the employer.