HSA What is it?

9 Benefits of Owning an HSA - Health Savings Account

An (HSA) Health Savings Account is a popular option for employees who elect
one of the increasingly prevalent High Deductible Health Plans.

9 HSA Owner Benefits

Technology

We provide web-based, fully integrated portals wicth 24/7/365 access to your account information.

HR Professionals

You will have access to our Human Resources staff with safe and easy-to-use online, self-service portals you and your employees can use 24/7/365.

Security

Enjoy secure access to accounts 24-7.

Managed by Experienced Professionals

Administered by a professional trustee/custodian.

Healthier Lifestyle

Now you can promote a healthier lifestyle through increased employee involvement and use of 100% covered preventative care. Go Green with paperless online claims, direct deposit reimbursement, and electronic statements.

Investment

The contributions are invested over time and can be used to pay for qualified medical expenses.

You Own It

You own the HSA, and it is yours to keep — even when you change plans or retire.

Flexibility

When owned by an employee, can be funded by the employee and the employer.

Tax Deductions

Your contributions are tax-deductible or pre-tax (if made by payroll deduction) and interest earned on your account and withdrawals for qualified medical expenses are tax-free! (Unused funds and interest are carried over, without limit, from year to year).

2022 HSA Contribution Limits:

HSA

2021

2022

Self-only contribution limit

$3,600

$3,650

Family contribution limit

$7,200

$7,300

The contribution limits for HSAs in 2022 will increase to $3,650 for single and $7,300 for family.

2022 HDHP amounts/limits

2022 high-deductible health plan (HDHP) amounts and expense limits were also announced.

HDHP (self-only coverage)

2021

2022

Annual deductible not less than:

$1,400

$1,400

Annual out-of-pocket expenses don’t exceed:

$7,000

$7,050

HDHP (family coverage)

2021

2022

Annual deductible not less than:

$2,800

$2,800

Annual out-of-pocket expenses don’t exceed:

$14,000

$14,100

The above limits means that an HDHP in 2022 is a health plan “with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses do not exceed $7,050 for self-only coverage or $14,100 for family coverage,” according to the IRS notice.

Your employees must be enrolled in an HDHP to be eligible to participate in an HSA. HDHPs are often referred to as HSA-eligible health plans.

Additional HSA Ownership Advantages

  • HSAs are triple-tax advantaged: funds saved in the account are tax-exempt, interest and earnings.
  • gained in the savings account are tax-exempt, and payments made from the HSA for qualified
  • Expenses are tax-exempt.
  • Participants own their individual HSAs, and they can travel with them from employer to employer, in retirement, and during unemployment.
  • HSA contributions roll from year to year; there is no deadline for using the funds, and the FSA the use-it-or-lose-it rule does not apply.
  • It can also become a supplemental retirement account. While health expenses continue to be eligible expenses for retirees, in addition, retirees can pay for any expense from their HSA with no additional tax penalties.
  • We have partnered with HealthCare Bank to act as the HealthCare Bank for our HSA clients.
  • Healthcare Bank offers a full suite of investment options for account holders with account balances exceeding $2,000.
  • Fully integrates accounts with our Limited or Post-Deductible FSA Options, allowing your employees to get even more tax advantage reimbursement savings.
  • The Provider Pay and Claims Integration features B3PA offers which are most advantageous to clients.
  • While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute only if you have a High Deductible Health Plan (HDHP).
  • Generally, a health plan (including a Marketplace plan) only covers preventive services before the deductible. For the plan year 2019, the minimum deductible is $1,350 for an individual and $2,700 for a family. For the plan year 2020, the minimum deductible for an HDHP is $1,400 for an individual and $2,800 for a family. When you view plans in the Marketplace, you can see if they’re “HSA-eligible.
  • See IRS Publication 502 for a list of qualified medical expenses: https://www.irs.gov/pub/irs-pdf/p502.pdf.
  • See IRS Publication 969 for information on the tax treatment of HSAs: https://www.irs.gov/publications/p969
  • “Your Employees Will Appreciate It.” Everybody’s trying to do all they can to save money. An HSA is an excellent benefit because it lets you put aside money to pay for health care expenses. You can earn interest on the contributions tax-free, can spend the money when you need to without a “use it or lose it” deadline, and can use the money on yourself, your spouse, or your kids. Tell your employer how great this would be for you and how offering an HSA makes him look like a hero. It’s an attractive benefit, not only to the current employees but any future talent he might want to attract.
  • Including HSAs in the Section 125 plan has the same effect as any other benefit added to the plan – employees contribute, taxable income is lowered, and there are tax savings all the way around. If your employer adds the HSA component and everyone contributes, the tax savings could be huge.
  • “It’s Simple.”
  • The administrative requirements of a Section 125 plan may seem daunting, but there’s no need to be intimidated. Plan administration can be painless if you get the right type of help; that is where we come in.

“Run it Through Our Cafeteria Plan, and You’ll See Big Tax Savings.”

Contact us for an HSA Group Quote
free-consultation

Just complete the form, email solutions@hrserviceinc.com or call toll free 833.685.8400 x1

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