A Health Savings Account is a tax-advantaged medical savings account available for those enrolled in a High Deductible Plan. An HSA is owned by the participant. The participant and/or the employer may contribute funds into the HSA. Funds may be used to pay for qualified medical expenses at any time, tax free. Funds roll over and accumulate year after year, if not spent.
The benefit portion is tied a HDHP that offers 100 percent coverage for preventive services. Once the in-network deductible is met, in-network services are paid at 100 percent. Instead of paying high premiums for coverage that may not be used, employees can pay lower premiums and save the difference in a personal tax-deferred account. Other advantages include the portability of the account and the ability to roll over funds.
For more information about OBL employee benefits programs, contact Gary Sutter.