Health Savings Account – HSA
The health savings account is an account that comes with any qualifying high-deductible health insurance plan. This account can be opened at just about any bank or credit union or through the financial partners of the insurance company, who will help you open and maintain your account over the years. To get an HSA, you must have a qualifying health plan compatible with health savings accounts.
How they Work: Any earnings on your contributions are tax-advantaged. Meaning earnings on your HSA dollars are not subject to taxation. The health savings account is funded by pre-tax contributions by the employee, though employers and other third parties also can contribute to the account. The employee determines the amount of money withheld each paycheck before payroll taxes are deducted. This gives employees more take-home pay while you, their employer, pay less in FICA and FUTA payroll taxes. When an employee incurs a qualified medical expense, they can pay using the B3PA prepaid benefits card, online bill pay, or other methods. If the employee doesn’t have enough money in their HSA to cover a medical expense, they can make a partial payment and pay the difference using another method. There is no “use it or lose it” condition. Any unused funds remain in the account and continue to accrue interest until used.
Our plan can help your employees:
- Offset rising healthcare costs with tax-free funds
- Plan for future health expenses with tax-free investment accounts that grow yearly— no “use-it-or-lose-it” annual requirement.
- Easily monitor health spending with convenient debit cards and secure online account access.
- Plan for retirement—after age 65, participants can use HSA funds for non-qualifying expenses.
- Add depth and flexibility to your employee health benefits and retirement plans with secure, FDIC-insured financial accounts.
- Reduce FICA and FUTA payroll taxes.
- Save money on health insurance premiums by offering HSAs and high-deductible health plans.
- Provide web-based, fully integrated portals with 24/7/365 access to account information.
- Free Human Resources staff with secure and easy-to-use online, self-service portals you and your employees can use 24/7/365.
- Increased employee involvement and 100% covered preventative care promote healthier lifestyle choices.
- Go Green with paperless online claims, direct deposit reimbursement and electronic statements.
At B3PA, delivering easy-to-use solutions backed by the highest service levels is our top priority. So, we offer a cloud computing solution to provide you and your employees with the necessary functionality, reliability, and integration. And you can be assured we’ll support you with the highest levels of IT expertise and regular additions of new, productivity-enhancing features.
If you enroll in an HDHP, you may pay a lower monthly premium but have a higher deductible (meaning you pay for more healthcare items and services before the insurance plan pays).
Minimum deductible (The amount you pay for health care items and services before your plan starts to pay) *Maximum out-of-pocket costs (the most you’d have to pay if you need more health care items and services).
If you combine your HDHP with an HSA, you can pay that deductible, plus other qualified medical expenses, using the money you set aside in your tax-free HSA.
Let us help you with your HSA Administration. Call for a free quote today!
2023 limits for HSAs, HDHPs, and EBHRAs
The 2023 HSA limit increases are in response to our country’s recent spike in inflation, with rates increasing at a 40-year high. The 2023 HSA limits were announced as part of Revenue Procedure 2022-24.
The new 2023 limits are:
HSA Single $3,850 / Family $7,750 per year
HDHP (self-only coverage) $1,500 minimum deductible / $7,500 out-of-pocket limit
HDHP (family coverage) $3,000 minimum deductible / $15,000 out-of-pocket limit
HDHP (self-only coverage) 2022 2023
Minimum deductible: $1,400 $1,500
Maximum out-of-pocket limit: $7,050 $7,500
HDHP (family coverage) 2022 2023
Minimum deductible: $2,800 $3,000
Maximum out-of-pocket limit: $14,100 $15,000
EBHRA 2022 2023
Limit $1,800 $1,950
Are you keeping up with the changing healthcare laws?
Contact us for a free consultation.