HSA

Health Savings Account

A Health Savings Account is a popular option for employees who elect one of the increasingly prevalent High Deductible Health Plans. As a tax-advantaged savings account, an HSA is used in combination with a High Deductible Health Plan, or HDHP. Employees can use their HSA dollars to cover any qualified medical expense.

  • HSAs are triple-tax advantaged: funds saved in the account are tax-exempt, interest and earnings gained in the savings account are tax-exempt, and payments made from the HSA for qualified expenses are tax-exempt

  • Participants own their individual HSAs and it can travel with them from employer to employer, in retirement and during unemployment

  • HSA contributions roll from year to year; there is no deadline for using the funds and the FSA use-it-or-lose-it rule does not apply

  • HSAs can become a supplemental retirement account. While health expenses continue to be eligible expenses for retirees, in addition, retirees can pay for any expense from their HSA with no additional tax penalties

  • B3PA has partnered with HealthCare Bank to act as the HealthCare Bank for our HSA clients HeathCare Bank offers a full suite of investment options for HSA account holders with account balances exceeding $2,000

  • B3PA fully integrates HSA accounts with our Limited or Post-Deductible FSA Options, allowing your employees to get even more tax advantage reimbursement savings

  • The Provider Pay and Claims Integration features B3PA offers which are most advantageous to HSA clients

Defining an HSA

What You Can Do with an HSA:

  • Earnings are tax-advantaged. Any earnings on your HSA funds aren’t subject to taxation with the B3PA HSA.

  • Funded by Employee Contributions. Pre-tax contributions, made by the employee, fund the account.

  • Outside Contributions May be Made. Employers and other third parties are allowed to contribute to the employee’s HSA.

  • Use-It-or-Lose-It Rule Does Not Apply. Unlike the Flexible Spending Account, dollars unused at the end of the plan year are not lost.

  • Employee Determines Amount Withheld Each Paycheck. The employee is in control of the dollar amount withheld, prior to payroll taxes, each month to fund the account.

  • You Can Add Flexibility & Depth to Your Plans. Health benefits and retirement plans can be improved with secure, FDIC-insured financial accounts.

  • Save Money on Health Insurance Premiums. Save by offering HSAs, along with high deductible health plans.

  • Healthier Lifestyle Choices Can Be Promoted. Through increased employee involvement and use of 100% covered preventative care, healthier lifestyle choices are encouraged.

  • Go Green! Digital online claims, statements, and direct deposit reimbursements contribute to a paperless lifestyle.