More employers are looking to balance costs without sacrificing the well-being of their workforce. As health care costs outpace inflation, qualified high-deductible health plans (HDHPs) remain popular. The right health savings account (HSA) strategy can help your organization control expenses. It can also help employees plan, save, and pay for their personal well-being.
Nearly half of our clients offer an employer-sponsored HSA with their HDHP. Many provide employees with a lump sum deposit. This process is known as “seeding” the account.
As you consider cost-control measures, a feature like HSA AssistTM can help manage cash flow by spreading employer HSA contributions over time. This feature also helps employees pay for certain health care expenses when they really need it, while increasing satisfaction with their benefits.
When employers face extreme cost-cutting measures, offering an HSA can be an effective saving strategy. This value-add benefit can support your HDHP adoption efforts and reduce your administrative costs.
Offering your employees an Individual HSA from PayFlex provides them with valuable tax-savings benefits. It also gives them exclusive savings through CVS Pharmacy®.
Your organization will receive income tax deductions on the funds you contribute to your employees’ HSAs. Along with these tax savings, you’re helping your eligible employees plan, save, and pay for their health care needs today, and into the future. And PayFlex offers exclusive discounts that help increase purchasing power. That can help their health care dollars go even further.
Unlike a 401(k) or IRA, an HSA lets your employees use their account for eligible health care expenses — without paying taxes at withdrawal. This can mean saving thousands on health care costs in retirement. An HSA offers multiple tax advantages. Employees can invest their funds so it grows, tax-free. Plus pretax payroll deductions aren’t subject to the 7.65 percent FICA tax.
The PayFlex Card® can give your employees instant access to their HSA to pay for eligible expenses at qualified merchants. Members can even use our Eligible Expense Scanner in the PayFlex Mobile® app to find out what’s eligible.
Check out the list of common eligible health care expenses. Use the search bar to find specific items and services. Or you can click on the column headers in the table to see which are eligible, eligible with a Letter of Medical Necessity (LOMN), or not eligible.