Your Workforce And Your HSA Program

The idea behind the HSA Account is a pretty simple one … it goes like this: If consumers have to pay more of their own medical expenses out-of-pocket, they’ll make more cost-effective choices.

The point being that the Health Savings Accounts might be able to put the lid on out of control health care costs while protecting your workforce from the dangers of catastrophic medical problems. More importantly, to qualify, your employees will have to be under the age of 65 (and therefore not yet eligible for Medicare Benefits) and participating in a high deductible health insurance plan–meaning an insurance policy with a minimum deductible of $1,000.00 for singles, and $2,000.00 for families.

Will your employees be able to take advantage of your company’s Health Savings Account Program? Good question. Because the plans are cost effective and flexible tools for controlling health care related expenses, HSA’s are playing a major role in changing the way workforce managers every deploy corporate health care dollars.

However, I am sorry to say, Health Savings Accounts aren’t exactly simple.

Introducing an HSA Plan to your workforce will require you to provide a new set of key HR services that will make it easier for them capitalize on the full potential of health savings accounts. New account welcome kits detailing program highlights, deposit confirmation notices, and regular account balance statements, will all be necessary to keep your workforce properly informed.

Unlike their MSA predecessors, (Archer Medical Savings Accounts) which were only for the self-employed and small business owners, HSA Accounts are available to just about anyone–without regard to employment status; or to any employer without regard to size. There are limits however. For instance, Health Savings Accounts can only be established for employees who are:

· Currently covered by a High Deductible Health Plan. The definition of a HDHP for use with an HSA is: a plan with an annual deductible of at least $1,000.00/$2,000.00 (for individuals/families) and annual out-of-pocket maximums of $5,000.00/$10,000.00 for the same.

· Not currently covered by any other health insurance plan,

· Cannot be claimed as a dependent on anyone’s tax return, and

· Not yet entitled to receive Medicare benefits.

Remember, when managed properly Health Savings Accounts can be a boon to both employer and employees.