HSAs Are Here to Stay
I remember the first time I enrolled in a High Deductible Plan and opened my own Health Savings Account. It was about six years ago. I was so young and innocent. I did my homework to make sure I understood the math and why this might be a better plan for my family and me. I had to do right by my kids since they would be taking care of me one day (at least that’s the plan).
After doing the math, I learned I’d save about 20% in premiums (payroll contributions) by enrolling in the HSA option as compared to the PPO plan. If my family had little or no claims, I was saving money – guaranteed! If we were to have a high claim year, then I’d pay a little more than what I would’ve paid if I was in the PPO plan, but not by much.
This was appealing since I didn’t like the thought of paying premium dollars to the insurance company, and then not needing the benefit anyway. With the bonus that all preventative care was covered 100%, and the fact the provider network was the same as the PPO plan, it made the decision simple.
The situation I was in, comparing a PPO plan alongside a HDHP/HSA, is like what I see with a lot of employees who have these options. What most employees have a hard time understanding is not only do they have a guaranteed savings from the amount contributed to premiums, but they also have additional tax savings on the money put into their HSA. This additional savings can add up over time. Therefore, it’s crucial employers invest the time in educating employees on how these plans work, so they can make an informed decision.
Regardless of your politics, the Trump administration and Republican Party strongly support Health Savings Accounts. So, expect HSAs to continue to grow in popularity, as evident in the ACA 'repeal and replace' proposals offered up by Republicans so far.
HSAs are here to stay no matter what our healthcare landscape looks like in the next few years. HSAs have already proven to be popular with both employers to help control costs, and employees who want to take advantage of additional tax savings while not overpaying for coverage.
For more information on the power of HSAs, reach out to the ‘A’ Team.
- Raw Onions Give Me Heartburn
- What’s the Difference Between a FSA and HSA?
- Health Savings Accounts: Your Healthcare 401(k)
- HSAs and Voluntary Benefits Go Together Like Peanut Butter & Jelly
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