HEALTH SAVINGS ACCOUNTS- HSAs - CAI Insurance Agency

Health Savings Accounts - HSAs

Giving Your Workers Convenience and Control

Health savings accounts (HSAs) provide an easy and convenient way for your employees to save tax-free money for qualified medical expenses. These include costs that may not be covered by your company's health care plan, such as over-the-counter medications and pre-deductible expenses.

HSAs work in conjunction with high deductible health plans to save you and your employees money, For starters, you won't have to pay federal, state, or FICA taxes on any funds your workers choose to have withheld by the HSA plan.

You'll get the same tax savings on any additional contributions you make to the HSA accounts on your employees' behalf (annual limits apply). The HSA plan allows workers to take higher deductibles on health insurance, reducing the cost of premiums.

Save Time and Paperwork Hassle

Providing HSA's to your employees can dramatically reduce your company's administrative costs. Employee use HSA accounts to pay for eligible medical expenses directly, eliminating many time-consuming reimbursement applications and claim forms.

HSA funds may be used for any eligible health care expense incurred by an employee in the plan, their spouse, or their dependents. Expenses must qualify under IRS regulations.

An HSA plan also rewards employees with healthy lifestyles. Unused funds are not lost at the end of the year, but continue to earn interest-free until they are needed

Who Qualifies?

An employee can participate in an HSA plan as long as the individual:
Has coverage under a qualified High Deductible Health Plan (HDHP)
Has no other form of primary medical coverage
Is not enrolled in Medicare
Cannot be claimed as a dependent on someone else's tax return
Is not an owner of an S-Corp, LLC, or Partnership entity

For more information on Flexible Spending Accounts, contact your representative or visit http://www.my-benovation.com/