The health savings account (HSA) 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. In order to get an HSA, you must have a qualifying health plan that is compatible with health savings accounts.
How HSAs Work
With the B3PA HSA, any earnings on your contributions are tax-advantaged. Meaning, earnings on your HSA dollars are not subject to taxation. The HSA 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 that is 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 HSA solution can help your employees:
- Offset rising healthcare costs with tax-free funds
- Plan for future health expenses with tax-free investment accounts that grow year over year— 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
Our HSA solution can help you:
- 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 along with 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
- Promote healthier lifestyle choices through increased employee involvement and use of 100% covered preventative care
- Go Green with paperless online claims, direct deposit reimbursement and electronic statements
At B3PA, delivering easy-to-use solutions backed by the highest levels of service is our top priority. We offer a cloud computing solution, designed to provide you and your employees with the functionality, reliability, and integration you need. 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 of your health care 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)
Individual HDHP $1,400 *$7,000
Family HDHP $2,800 *$14,000
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