NEW YORK, Sept. 26, 2018 /PRNewswire/ -- Clarity Benefit Solutions shares eight benefits of Health Savings Accounts that attract employees.
Employees who are covered by an High Deductible Health Plan (HDHP) can take advantage of a Health Savings Account (HSA) to pay for current and future health care expenses. The following are eight benefits of HSAs that attract employees.
HSA accounts are owned by the employee. Since the employee is the holder of the HSA, he or she owns it, and thus makes all decisions pertaining to the account—such as how much money to set aside, how to spend the funds, and what to spend the money on. Although employers can contribute to the fund, the employee holds it even if he or she get another job.
HSA contributions are tax-deductible. Funds placed in an HSA account are tax-deductible. If HSA contributions are made through a payroll deduction, the monies are also pre-taxed.
HSA withdrawals are tax-free. Provided that the withdrawn HSA funds are set aside for qualified medical expenses, withdrawals are tax-free. Examples of eligible medical expenses include deductibles, co-pays, vision/dental expenses, and prescription drugs.
HSA monies are immediately accessible. Employees can immediately access funds that they have earmarked for an HSA account.
HSA funds that are unused can be rolled over. Any HSA monies that have not been used are available for use the following year. Plus, there is no maximum carryover amount.
HSA monies can be used in unconventional ways. There are numerous medical expenses and situations that go beyond doctor/specialist visits and procedures that are qualified HSA expenses. Examples include psychiatric care, alcoholism treatment, and treatment for drug addiction. HSA funds can also be set aside for weight loss relating to obesity treatment—as long as it is prescribed by a physician—as well as employees who require physical therapy while recovering from an accident or injury.
HSA funds can be set aside for medical expenses sustained in retirement. Employees may not be aware of this lucrative advantage. This advantage will be particularly attractive to older employees since health expenses can be costly during this period.
Interest earned with an HSA is also tax-free. HSA account funds are tax deductible off gross income. The funds grow tax-deferred.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions