Make a smart investment in a Health Savings Account (HSA ... · A Health Savings Account (HSA) is...
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A Health Savings Account (HSA) is often referred to as a “medical” 401(k), because your employees actually own their HSA for life. Your employees can put money into an HSA on a tax-advantaged basis to save for current and future medical expenses. They get more control over how their health care dollars are spent, while earning interest, tax-free. But the best part about the HSA is that the funds in their account roll over from year to year, and are always available to your employees to help them pay for qualified medical expenses on a tax-free basis. That’s good for them and for you, too. What are the 5 reasons employers should offer Health Savings Accounts (HSAs)? The cost of health insurance has hit an all-time high. The problem is that consumer choice and the pressure it brings to the market have been removed. Employers typically pay the majority of health care costs, limiting their employees' options and driving costs up. Consumer-directed health care is the future of health care, and HSAs offer a much-needed alternative for employers. When consumers are given a choice, quality of care may improve and costs may fall. Having employees assume more of the initial cost of health care may help them to make better choices, allow them to have more control over how their health care dollars are spent and help reduce health care costs for employers. 1. Reduced health insurance premiums In order to qualify for an HSA, an employee must be covered under an HSA-eligible health plan. Premiums for HSA-eligible health plans cost significantly less, resulting in cost-savings to employers. To find out more about how much you could save with an HSA-eligible health plan, talk to your health insurance agent or broker. 2. Incentive for employees to use health care services wisely Employers who fund their employees’ HSAs are really providing an incentive for employees to become educated and personally responsible health care consumers. This may also save the employer money and helps to lower future increases in health insurance premiums. 3. Promotes healthier lifestyle choices by employees People with an HSA have a financial incentive to use preventive care. They don't want to wait until a health problem becomes serious, since they know that paying medical expenses will be coming out of their pocket. 4. Tax savings An HSA is a way for employers to make available to their employees a valuable tax- sheltered form of compen- sation at a low cost. Employer contributions made on behalf of employees are deducted on the employer's federal business income tax return for the year in which they make the contributions without regard to whether the contributions are used (unlike other types of benefits, which are only deductible in the year in which such benefits are paid). 5. Attract and retain employees An important factor in finding and keeping good employees is the benefits package that employers are able to offer or make available to their employees. A competitive health care plan is important to many employees and an HSA (especially one funded in whole or in part by the employer) can be a determining factor when trying to hire and retain valued employees. Learn more: Contact: Malini Petersen | Phone: 908.709.4783 Email: [email protected] Web: hsaeducational.bankofamericacdhc.com Make a smart investment in a Health Savings Account (HSA) for your employees Health Savings Account The HSA for Life ®
Transcript of Make a smart investment in a Health Savings Account (HSA ... · A Health Savings Account (HSA) is...
A Health Savings Account (HSA) is often referred to as a “medical” 401(k), because your employees actually own their HSA for life. Your employees can put money into an HSA on a tax-advantaged basis to save for current and future medical expenses. They get more control over how their health care dollars are spent, while earning interest, tax-free. But the best part about the HSA is that the funds in their account roll over from year to year, and are always available to your employees to help them pay for qualified medical expenses on a tax-free basis. That’s good for them and for you, too.
What are the 5 reasons employers should offer Health Savings Accounts (HSAs)?
The cost of health insurance has hit an all-time high. The problem is that consumer choice and the pressure it brings to the market have been removed. Employers typically pay the majority of health care costs, limiting their employees' options and driving costs up. Consumer-directed health care is the future of health care, and HSAs offer a much-needed alternative for employers. When consumers are given a choice, quality of care may improve and costs may fall. Having employees assume more of the initial cost of health care may help them to make better choices, allow them to have more control over how their health care dollars are spent and help reduce health care costs for employers.
1. Reduced health insurance premiums
In order to qualify for an HSA, an employee must be covered under an HSA-eligible health plan. Premiums for HSA-eligible health plans cost significantly less, resulting in cost-savings to employers. To find out more about how much you could save with an HSA-eligible health plan, talk to your health insurance agent or broker.
2. Incentive for employees to use health care services wisely
Employers who fund their employees’ HSAs are really providing an incentive for employees to become educated and personally responsible health care consumers. This may also save the employer money and helps to lower future increases in health insurance premiums.
3. Promotes healthier lifestyle choices by employees
People with an HSA have a financial incentive to use preventive care. They don't want to wait until a health problem becomes serious, since they know that paying medical expenses will be coming out of their pocket.
4. Tax savings
An HSA is a way for employers to make available to their employees a valuable tax-sheltered form of compen-sation at a low cost. Employer contributions made on behalf of employees are deducted on the employer's federal business income tax return for the year in which they make the contributions without regard to whether the contributions are used (unlike other types of benefits, which are only deductible in the year in which such benefits are paid).
5. Attract and retain employees
An important factor in finding and keeping good employees is the benefits package that employers are able to offer or make available to their employees. A competitive health care plan is important to many employees and an HSA (especially one funded in whole or in part by the employer) can be a determining factor when trying to hire and retain valued employees.
Learn more:
Contact: Malini Petersen | Phone: 908.709.4783Email: [email protected]: hsaeducational.bankofamericacdhc.com
Make a smart investment in aHealth Savings Account (HSA)for your employees
Health Savings AccountThe HSA for Life®
1Bank of America makes available The HSA for Life that is intended to qualify as a Health Savings Account as set forth in the Internal Revenue Code, Section 223. However, your employees are solely responsible for ensuring that they satisfy the Health Savings Account eligibility requirements set forth in Section 223. If your employees establish a Health Savings Account and they are not otherwise eligible, they may be subject to adverse tax consequences. We recommend that your employees contact qualified tax or legal counsel before establishing a Health Savings Account. These conditions are subject to change. For more information, go to www.treas.gov/offices/public-affairs/hsa. 2Amounts are subject to cost-of-living adjustments. 3The definition of “disability” as defined in the Internal Revenue Code, Section 223. 4In these circumstances, withdrawals are not subject to the 20% excise tax. However, withdrawals (excluding those to pay for qualified medical expenses) may be included in your employees’ gross income and subject to income tax.
Bank of America, N.A. Member FDIC. © 2010 Bank of America Corporation.00-09-0876NSB (Rev. 09/2010)
*Investments in mutual funds: ARE NOT FDIC INSURED ARE NOT BANK ISSUE MAY LOSE VALUE
OR GUARANTEED
Health Savings AccountThe HSA for Life®
VALID THRU DEBIT4888 1234 5678 9010
12/12CHRIS SMITH
The HSA for Life®
Health Savings Account
Consider an HSA for your employees
If your employees enroll in an HSA-eligible health insurance plan, you can offer them an HSA through Bank of America and sponsored by you. The Bank of America HSA program offers:
• Competitive interest rate.
• Online HSA tools and calculators to help employees understand the benefits of HSA health care programs.
• Online funding tool that allows you to easily contribute your employer-sponsored HSA funds as well as your employees’ pre-tax contributions.
• Online claims for quick and easy provider payments and out-of-pocket reimbursements.
Here’s how your employees’ savings add up1
• Pre-tax payroll contributions2
• Tax-free growth
• Tax-free withdrawals for qualified health care expenses
An investment in your employees’ health and future
• Once the HSA balance reaches $1,000, your employees may choose to invest any portion above this amount in select mutual funds.*
• Unused funds roll over year after year.
• If employees change jobs, their account goes with them.
• After age 65, or if they become disabled,3 your employees can use the funds for whatever they choose, penalty-free.4
• Employees enjoy easy online account management.
• Contributions to your employees‘ HSAs may be deducted on your federal corporate income tax return in the year the contributions are made.
The HSA for Life Visa® debit card comes with their account to pay for qualified expenses
• Doctor’s office visits and annual physicals
• Prescribed health care products
• Preventive dental care, orthodontia, eyeglasses, contact lenses and laser eye surgery
• Copayments, coinsurance and deductibles
Learn more about how you and your employees can save
Visit hsaeducational.bankofamericacdhc.com to check out the many helpful tools and calculator like the HSA Balance and Tax Savings Calculator shown below.
To get your employees’ HSA program started:
• Visit hsaeducational.bankofamericacdhc.com
• Click on Benefits Education
• Select Employer Group Set-Up Form
• Complete and fax the form along with the signature pages
• Once your group is set up, you’ll receive notice with instructions on enrolling your employees in their HSA
