Health Savings Accounts
A Health Savings Account (HSA) is an employee owned tax-advantaged bank account. An HSA allows participants to pay for eligible medical, dental and vision expenses with tax-free dollars. To qualify for an HSA, you must offer a compatible high-deductible health plan (HDHP) and employees cannot be covered by any other prohibited health coverage, i.e., certain FSAs or HRAs. Unlike an FSA, there is no “use or lose” stipulation with an HSA, so funds can roll over from year to year. An HSA also has long-term investment opportunities with tax benefits on contributions, earnings and distributions.
- HSAs can reimburse the following:
- Doctor and hospital visits
- Medical equipment
- Dental care
- Vision Care
- Prescription medications
- Premiums for long-term care insurance
- COBRA premiums
- Premiums for coverage while receiving unemployment compensation
- Premiums for individuals over age 65, such as retirement health benefits and Medicare
As the employee benefits landscape changes, we’re committed to providing you and your employees the best options available.
As a third-party administrator of HSAs, you can count on P&A Group to make the administration process seamless, from employee education and enrollment to monthly reporting.
To learn more about HSAs for your company submit a contact us request to discuss your needs.