As business owners continue to deal with the sticker shock of their 2015 group health insurance renewals, many are looking for ways to continue offering their staff medical benefits that are affordable, easy to understand and generous in coverage. And as many have discovered, Health Savings Accounts can do just that. Here are some of the top reasons to consider switching from a traditional plan to an HSA.
HSA Plans Offer Lower Premiums
Health Savings Accounts carry higher deductibles, which in turn allows them to be offered at lower premiums. This can be beneficial for healthier and younger groups who are most concerned with offering employees affordable coverage, while still protecting them financially during unexpected and major medical events.
An HSA Provides Excellent Coverage
Most HSA plans offer the same superior coverage that you would expect from a traditional copay plan. They cover an extensive network of hospitals and physicians, and cover everything from routine office visits and physicals, to OB/GYN and Rx medications. Plus, they can cover 100% of your expenses once meeting the deductible.
There are Extensive Tax Benefits
From both the business owner's and employee's perspective, there are a number of tax advantages to Health Savings Accounts. Funds contributed are tax-deductible off gross income, and will continue to grow in a tax-deferred manner. Additionally, qualified health and medical expenses are not subject to any taxation.
Your Unused Funds Rollover
With today's most traditional plans, the money you spend on health insurance premiums is gone the moment it leaves your account; and this is as true for employees as it is for employers. With an HSA, contributed funds that are not used by the end of the calendar year can be rolled over for future use, and in a number of distinct ways. for employees, this means more freedom on how their funds are used. For businesses, it allows increased investment and working capital benefits.
It Can Cover Health Insurance While In-between Jobs
In addition to the medical benefits they provide while you're on the job, the funds from your HSA can also be used to cover the cost of health insurance premiums when you leave the company, or find yourself in-between professions. This is a common concern for many would-be job seekers, and one where Health Savings Accounts truly stand out.
Retirement, Long-term Care & Medicare Expenses
Once you turn 65, funds contributed to an HSA can be withdrawn at any time with the fear of being penalized. These can be used to help with day to day expenses, to supplement your retirement income or simply as a financial cushion if ever needed. They are frequently used to help offset the expense of long-term care, Medicare supplements and many other common health concerns.
Could a Health Savings Account Help Your Business?
If you're a business in Illinois or the Chicago area facing an unexpectedly expensive group health renewal, Premier can help you in finding a solution that is more affordable and seamless in coverage. Call our Lisle/Naperville office today for a free group plan review at 800-369-0287.