BlogsThe Benefits of Offering an HSA for the Employer
June 19, 2017, by Ryan Miller
In our last article, we talked about Health Savings Accounts (HSAs) and the benefits they provide employees. Now, we want to focus on how an HSA program can be good for you, the employer.
Medical costs continue to rise and the future of healthcare in this country is a bit unclear at the moment. HSAs present an opportunity for employees to set aside tax-free money for personal healthcare costs now and for their retirement later on. And because HSA programs are contingent on high-deductible health plans, everyone is able to save money on premiums.
Let’s look at some of the key benefits employers will see with an HSA:
1. Less-Expensive Healthcare Plan Options
HSAs allow you to offer health insurance plans with higher deductibles, which means lower premiums for you and your employees.
2. Employees Have Financial Flexibility
An HSA program gives your employees more options to control their healthcare costs and also to set aside money for retirement. Plus, it’s all tax-free.
3. Tax Deductions
If you are contributing toward employee HSAs, there’s a good chance that you can receive a tax deduction for your contributions. Be sure to consult with your tax advisor on whether or not you can deduct your employees’ HSAs from your federal income tax return.
4. More Competitive Healthcare Plans
By providing a competitive healthcare plan as part of a quality benefits package, you can appeal to more applicants and reduce retention of current employees. HSA packages are also transferrable to other jobs or retirement plans.
5. More Options for You
HSAs enable some businesses to provide health insurance benefits when they previously could not afford them. Even if you currently offer healthcare in your benefits package, an HSA will open the doors to more coverage options, which is a win-win for everyone.
To learn more about HSAs, the best plans available and how to implement them as part of your employee benefits package, contact Centennial by clicking here or calling (714) 740-1111 ext. 274. We’ll help you make the right decisions about all of your employee benefits.