This document discusses Health Savings Accounts (HSAs) and whether they are a good option. It defines an HSA as a savings account that requires a high deductible health plan and can be used to pay for qualified medical expenses. It notes that HSAs provide tax advantages for both employers and employees. Advantages include tax-free contributions and promoting healthcare consumerism. Disadvantages include employees owning contributed funds and less employer control over expenses. The document also discusses HSA funding options, contribution limits, and questions employers should consider about setting up and educating employees on HSAs.

1. 05/27/2014
Sean Whinnery – Account Executive
Greg Cieslewicz – Communications Specialist
Are HSAs right for you?

2. What is an HSA?

3. An HSA Defined
• Health Savings Account
• Requires a qualifying high deductible
health plan
• Funds in an HSA can pay for qualified
medical expenses (as outlined by the IRS)
**HSA funds can be withdrawn to pay for
non-medical expenses at a penalty

4. • $1,250 Single Deductible /
$2,500 Family Deductible
• $6,350 Single Out-of-Pocket Maximum /
$12,700 Family Out-of-Pocket Maximum
What plans qualify for an HSA?

5. Why would someone
want an HSA?

6. HSA Advantages
Employer and
Employee can
contribute tax free
High level of
healthcare
consumerism
Employees can
contribute their
own money

7. HSA Disadvantages
Employer
contributed money
belongs to the
employee
Less employer
control than an
HRA
Employer cannot
determine what
expenses qualify

8. How does funding
work with an HSA?

9. HSA Funding
• Employer can choose whether or not to fund.
• Employees can contribute
• Contribution limit set by federal law
• Contribution limits are shared by employee and
employer

10. HSA Funding
• Funding Options:
– One-time seed money
– Matching contributions
– Quarterly, monthly, or other repeating contribution

11. What else should
people remember
about HSAs?

12. Other HSA Questions
• Will the employer provide seed money or fund
the HSA in some fashion?
• Will the employer set up a banking relationship
for their employees?
• Will the employer set up automatic paycheck
deductions for employees who want them?
• Will the employer use an employee education
program to help their employees understand
HSAs?

13. Questions?