Quick Facts: HSA

Here are some things to remember when considering an HSA for your employees:

 

• Once the deductible is met, HSA plans will pay for medications with the same cost sharing as all other medical expenses. This could limit the maximum out-of-pocket costs in some cases.
• The premium for an HDHP is also generally less than the premium for traditional health insurance. The client can typically save up to 50 percent on an HSA plan premium over traditional health plans.
• In catastrophic situations the maximum out-of-pocket expenses in HSAs can be less than that of a traditional health plan, because a qualified HDHPs can cover 100% after the deductible is met.
• Over a period of time, if medical expenses are low and contributions are made regularly, HSAs can accumulate significant assets that can be used for health care tax free or used for retirement on a tax-deferred basis.

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