Health Savings Accounts
The HSA Triple Tax Advantage
Pre-tax contributions decrease taxable income meaning more money in your pocket.
Investment accounts earn tax-free interest meaning more money for the future.
Paying for eligible expenses with tax-free money increase purchasing power.
A Health Savings Account (HSA) is an individually-owned and managed account that allows participants with Qualified High Deductible Health Plan (QHDHP) to pay for qualified medical, dental, vision, prescription, and deductible expenses with tax-free money.
An HSA with a QHDHP makes health care more affordable with lower premiums and encourages participants to be more involved in their healthcare decisions. Employers and employees can maximize savings by pairing an HSA with a Limited Flexible Spending Account (LFSA) to help with vision and dental expenses.
An HSA is also a powerful retirement planning tool. An HSA’s triple tax advantage can help participants save more for the future. Unlike an FSA, participants never lose unused funds and have the option to watch them grow in tax-free investment accounts.
BPC’s HSA Administration Services include designing a plan that meets the organization's goals and IRS guidelines, working with health insurance agents and providers of the client’s choice, preparing HSA plan documents, Summary Plan Descriptions, enrollment and claim forms, and administering the day-to-day operations of your HSA.
HSA Advantages for Employers
- HSAs provide significant payroll tax savings for the employer
- HSAs coupled with a QHDHP helps employers reduce insurance premium costs
- Encourages employees to become more involved in their health care and encourages less consumption of unnecessary medical services.
- Funding flexibility allows for HSAs to be funded by the employer, the employee or both via payroll deductions
HSA Advantages for Employees
- Encourages participants to become more involved in health care decisions
- Reduces consumption of unnecessary medical services
- Funding flexibility
- Provides additional savings tools
HSA Advantages for Participants
• Pre-tax contributions decrease overall taxable income
• Investment account earns tax-free interest which means more money for the future
• Paying for qualified expenses tax-free increases purchasing power
• Unused funds continue to rollover year after year allowing employees to save for future medical expenses
• HSAs are owned by the employee and can be carried from job to job