Help your employees make a plan with a Health Savings Account

What is a Health Savings Account?

A health savings account (HSA), is an employee owned tax advantaged account that can be used to build savings to pay for current and future medical expenses. An HSA is available to any employee who is enrolled in a High Deductible Health plan (HDHP).

How an HSA Works

An HSA, paired with a HDHP, allows employees and employers to make pre-tax contributions* to an FDIC-insured account that can be used to pay for qualified medical expenses. Balances earn tax-free interest and roll over from year to year.

HSA benefits for employers

• Employer HSA Contributions qualify as a tax deduction for the employer.
• Employer FICA payments will be lower when HDHPs are offered to employees. Employer contributions are not subject to Social Security of other federal employment taxes.
• Employers can save on their portion of health insurance premiums. HSA-qualified health plans (HDHP) usually have lower premiums.