Health Savings Accounts (HSA)

Health Savings Accounts: HSA, Indianapolis Indiana Employee Benefits

Russell Benefit Consulting provides employee benefit packages to businesses and industries of all types and sizes. Health insurance is the single most important benefit to protect your employees' financial security.

A number of options now exist as alternatives to traditional, fully-funded medical plans. These optional plans can provide the insured with greater flexibility regarding medical decisions, as well as offering potential cost savings to the employer.

Health Savings Accounts: Banking on Your Group's Good Health

Health Savings Accounts (HSA) are typically beneficial for self-employed small business owners or companies employing younger adults in their 20's and 30’s, and generally in good health. Because young men typically don’t go to the doctor on a regular basis, premiums tend to be less expensive.

An HSA is a savings and spending account that only requires a limited cash investment that can be applied to mutual fund investments. In addition, an HSA can be offered under a cafeteria plan to save tax dollars for both the employer and employees.

Cafeteria Plans for Customized Coverage

Cafeteria plans, also known as flexible benefit plans, give employees the opportunity to customize benefits to meet particular needs. Cafeteria plans are specially authorized by Section 125 of the Internal Revenue Code.

A typical cafeteria plan lets employees redirect a part of their salary to select options from a variety of benefits. The premiums are deducted pre-tax, before an employee’s salary is subject to federal or state income tax or Social Security taxes (FICA).

An employer may also contribute to the plan for its employees. Employer contributions are non-taxable to the employee if used for qualified purposes.

HSAs Help You Reach Goals

A truly effective HSA should meet several objectives:

• Allows employers to offer money-saving high deductible health plans
• Expands employers options when choosing which health plans to offer employees
• Create better employee awareness of their health care coverage through hands-on management of their health care spending
• Potential higher rate of return for the employer with mutual fund investment
• Opportunities for members to take a more proactive approach to planning future health care decisions

HSAs Provide Unique Benefits

While not a big niche market, HSAs provide employees a number of unique benefits, including:

• Tax Deferred Contributions - premiums deducted pre-tax; employee gets more back in the paycheck; tax shelter for higher income levels
• Benefits are transferable; good for small businesses and “mobile” industries, such as:
  • Restaurants and seasonal businesses
  • Small law firms
  • Doctor groups
  • Technology companies
• All contributions belong to employee, whether made by the employer or the employee
• Employee makes all medical decisions and determines how funds are spent
• Contributions are 100% vested, no waiting period

Employee Benefits Administrator Groups

To remove the burden and cost from employers, we also administer these programs. Learn more at Employee Benefits Management / Administration

Learn More About Health / Medical Insurance

Fully-Funded Plans
Self-Funded Plans
Health Reimbursement Accounts
Flexible Spending Accounts