My employees are asking me about a Health Savings Account. What is it and how would it benefit my employees and me?
by Debi Enders
Health Savings Account (HSA) is a savings product available at some banks, credit unions and insurance companies. The HSA is an alternative way for you and your employees to pay for your health care as well as save for future medical expenses, and do so with tax benefits.* Money that is deposited into the HSA can be used to pay medical, dental and vision expenses.
In order to qualify for a Health Savings Account, you and your employees must first be enrolled in a High Deductible Health Plan (HDHP). An HDHP is a health insurance plan with lower premiums and higher deductibles than traditional health plan.
Contributions to a Health Savings Account can be made through automatic payroll deduction or through regular deposits such as a personal check or online banking.
A Health Savings Account is a flexible and affordable option for many small businesses and their employees. If you think that the HSA might be a less expensive alternative to your traditional health care, check with your financial institution to learn more.
* Always consult your tax advisor.
Debi Enders (debi.enders@commercebank.com) is assistant vice president, small business banking at Commerce Bank.
Submitted 10 years 137 days ago