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.