Approximately 22 million Americans and growing are enrolled in an HSA with a high deductible health plan.

 What is a Health Savings Account HSA?

In a nutshell, an HSA is a tax-free investment in which the money invested is earmarked exclusively for medical expenses. You as an employer (or your employees) put pre-tax dollars into an investment account that grows your money tax-free. Leaving more of the money available to you to be spent on qualified health care costs. It’s truly a win-win-win!

What are the requirements for opening an HSA?

In order to contribute to an HSA, you need to be covered under a high-deductible health plan(HDHP). For 2019, you must have a health insurance policy with a deductible of at least $1,350 for single coverage or $2,700 for family coverage.

What are the advantages of an HSA?

  1. Triple tax advantage(invest pre-tax, accumulate tax-free, and withdraw tax-free)
  2. Never “use it or lose it”, the money stays in your account and continues to grow
  3. No deadline for reimbursement of employees’ medical expense
  4. Can be a backup retirement account
  5. Employees can take HSA with them should they leave a company