Why Health Savings Accounts Are a Win For Employers, Employees, and Insurers

The HSA is based on a high deducible insurance plan which allows the employee to take on a higher level of responsibility and risk for medical expenses than a traditional insurance policy. Employees that are quick to go to the doctors office because of low copays (because visits only cost $10) are less apt to go when they experience less serious conditions such as the sniffles. You think twice about paying when you have to pay the full $75 that the insurance company doesn’t make up.

How To Implement a Health Savings Account

Ask your employer to implement a health savings account program, or implement one for yourself individually. Healthcare costs are increasing at a faster rate than wages with employees bearing more of the expense burden. A health savings account provides a pretax way to contribute to an account that will grow over time. You have the option to use the money for medical expenses on a tax free basis or for any purpose ona retirement level if you want to pay the penalty.

Health savings accounts ultimately save money for all those involved by giving more accountability to the consumer. Lowering the cost of healthcare should be a priority for all informed citizens. When considering employee benefits, it is important to consult a licensed financial professional.