How Does a Health Savings Account Work?
A health savings account is one way to offer your employees added incentives without costing your company any extra overhead. A health savings account, sometimes referred to as an HSA, allows your employees to make tax-deductible contributions from their payroll to be used for current and future health care costs. With the rising costs of health care and insurance premiums, this helps your employees by allowing them to pay for certain medical expenses on a pre-tax basis.
How Does a Health Savings Account Work? Get the Complete Details from PrimePay
Annual contribution limits for individuals and families may change over the years, but a health savings account typically works like a 401(k) plan. Your employees decide the amount that they wish to be deducted, pre-tax, from their payroll. Employers are not required to contribute to their employees' health savings account, though some opt to do this. Actually, anyone can contribute to an employee's HSA, including spouses, relatives, and friends.
Get Answers: How Does a Health Savings Account Work?
PrimePay Offers a Variety of Pre-Tax Health Accounts
Who Can Participate in an HSA?
If you currently participate in a statutorily defined high deductible health plan, sometimes referred to as an HDHP, and are not covered under any other health plan, you may participate in a Health Savings Account. Other conditions may apply to this. Ask PrimePay if you are eligible to participate in an HSA program.
What Sort of Qualified Medical Expenses Will My HSA Cover?
The funds of your health savings account will cover certain qualified medical expenses that are typically covered by most health care plans like general office visits, emergency room services and hospitalization, prescription drugs and some over the counter medications, vision expenses, non-cosmetic dental expenses, and more.
What Other Pre-Tax Health Accounts Does PrimePay Offer?
- Premium Only Plans (POP)
- Flexible Spending Accounts (FSA)
- Health Reimbursement Arrangements (HRA)
