A Tax-Advantaged Account Built for Healthcare
A Health Savings Account is a personal savings account that employees use to pay for qualified medical expenses. Contributions are made pre-tax, the balance grows tax-free, and withdrawals used for eligible healthcare expenses are never taxed. This triple tax advantage makes an HSA one of the most powerful financial tools available to employees.
To be eligible for an HSA, an employee must be enrolled in a qualifying High-Deductible Health Plan (HDHP). The HDHP typically carries lower monthly premiums than traditional health plans, and the HSA allows employees to set aside the premium savings to cover the higher deductible when they need care.
Unlike Flexible Spending Accounts, HSA funds never expire. The balance rolls over every year and can be invested for long-term growth, making an HSA an effective vehicle for funding healthcare costs in retirement.
A Benefit That Keeps Growing
Healthcare costs are one of the largest financial concerns for American workers, and they only increase with age. An HSA gives employees a structured way to save specifically for healthcare, reducing the financial stress that comes with unexpected medical expenses.
Employers benefit as well. Offering an HDHP paired with an HSA typically reduces employer premium costs compared to traditional group health plans. Employers can also contribute directly to employee HSAs as an additional benefit, which is tax-deductible for the business and tax-free for the employee.
Employees who build their HSA balance over time gain real financial security. By age 65, HSA funds can be withdrawn for any purpose without penalty, functioning like a traditional retirement account for expenses beyond healthcare.
Triple Tax Savings. No Other Account Does This
What HSA Funds Can Be Used For
HSA funds can be used tax-free for a wide range of qualified medical expenses for the account holder, spouse, and dependents.
Why Employers Contribute to Employee HSAs
Employers are permitted to contribute directly to employee HSAs, and many do so as a way to make the HDHP more attractive and to offset the higher deductible employees face with that plan design.
Employer HSA contributions are tax-deductible as a business expense and are also exempt from payroll taxes, making them one of the most tax-efficient forms of employee compensation available.
Pair your group health
plan with an HSA
We help employers set up HDHP and HSA combinations that reduce premium costs, benefit employees, and provide meaningful tax advantages for everyone involved.
