“Beware of little expenses. A small leak can sink a big ship.”
– Benjamin Franklin
When thinking about the rising cost of employer-provided health care, it’s important for companies to take a holistic view of expenses. Employees and employers are on the same side in that both want a great product and both want to spend less money. What both might not realize is that a high deductible health plan (HDHP) with a health savings account (HSA) is probably the best deal to accomplish both. For companies wanting traditional health insurance products, as opposed to a healthcare captive or subscription-based model, HDHP with HSAs are winners all the way around.
For the employees who are used to paying copays and deductibles with post-tax dollars, these plans allow for workers to put as much as $6,900 into a savings account with pre-tax dollars. This means first-dollar coverage is true dollar coverage without the government taking their cut off the top. For employers who are seeing their payroll taxes climb in this economy, note that both the employee contribution into HSA, or company funds put in employees’ accounts both lower payroll tax exposure.
For more information on HDHP with HSA strategies, contact a BenefitCorp consultant here.