In our 2011 4th quarter newsletter, JDS Benefits cited an internal study finding that the premium variance between traditional health plans and High Deductible (H.S.A Qualified Plans) is becoming less and less. It was also cited that while the premium savings may not appear to be as great, HDHP’s & H.S.A’s still provide many employers with the leverage to strategically control costs while maintaining a competitive employee benefits portfolio. One of those effective strategies is to provide a traditional H.S.A plan in conjunction with an employer sponsored HRA.
Benefits for employers
Adding an HSA to an existing HRA program* can give employers a more robust employee health benefit at a lower cost. While HRAs are funded and managed solely by the employer, an HSA:
- Is funded and managed by the employee
- Can help lower payroll on employee pre-tax contributions
- Gives employees more control over their healthcare and medical expenses, along with more control on how pretax dollars are spent
- Encourages preventive care which can lower absenteeism and improve productivity
- Can reduce the overall number of employee healthcare claims
- Rounds out an employee benefits program which helps to attract and retain employees
Benefits for employees
An HSA gives employees more control over their healthcare and medical costs with:
- Ability to pay for healthcare expenses prior to meeting the health plan deductible or towards future medical expenses
- Tax advantages on contributions and payments made from the Health Savings Account
- Savings are in interest bearing accounts and earned interest is tax-free
- More choice and flexibility when selecting their healthcare services
- Funds roll over from year to year – there is no “use it or lose it” penalty
How Post Deductible-HRA’s and H.S.A’s work together...
If you're interested in putting an HSA or HRA plan in place for your employees, give us a call and we'll walk you through the process and design a program customized to your needs.