How Small Employers can Benefit from HSAs (Health Savings Accounts)
The two biggest problems facing businesses today are rising health insurance costs and taxes. Health Savings accounts (HSAs) are an effective way to help small employers and large employers save money on both of these.
Health Savings Accounts were introduced in 2004 to allow individuals to pay for medical services up front through funds they deposit tax-free nto their personal Health Savings Account. A required insurance policy then kciks in for catastrophic expenses. Any unused funds build up from year to year and collect interest in the process. Today these advantages apply to employers benefit programs, employee’s and the independent health insurance plan owner.
Put simply, no other investment account has the tax advantaged that health savings accounts do. Throughout the life of a Health Savings Account its owners can withdraw finds for qualified medical expenses tax-free. Because of this, taxpayers shoulc consider fully funding their Health Savings Accounts fist before any other type of retirement accounts.
Hello Terry,
HSA’s are also a fantastic way to be reimbursed for qualified LTCI premiums up to the eligible premiums amount which are for 2010:
Age 51-60 $1,230 Age 61-70 $3,290 71 and above 4,110 per person.
This is true even if the HSA is offered through and employer-provided cafeteria plan.
Enjoy,
Chuck