Are you an employer?Does your company have a high deductible plan? You may want to consider contributing to an Aroostook Savings & Loan Health Savings Account (HSA).
Health Savings Accounts (HSA) are designed to reduce insurance costs for both employers and employees. If you are considering offering an HSA as part of your employee benefits plan, here are some additional benefits you will realize.
Lower insurance costs - Switching to an HSA-qualified high-deductible health plan should reduce your insurance premiums. In addition, rather than paying 100 percent of insurance dollars towards premiums, an HSA allows you to distribute some of these funds directly to your employees by making contributions to their accounts.
Offer a more diverse benefits package - Including HSAs in your benefits plan can enhance your benefits package and aid in attracting and retaining key employees.
You can reduce you and your employees’ taxes - Contributions you make to your employees’ Health Savings Accounts are made with pre-tax dollars and will reduce your employee’s taxable income. Both employees and employers can contribute to an HSA. There are individual and family annual contribution limits. HSAs grow in the same tax-deferred manner as IRAs. The funds can be used to pay for qualified medical expenses on a tax-free basis. After the age of 65, HSA funds can be used to be for anything and the employee only pays income tax on the funds removed.
Minimize administrative costs - Employees own and administer their own HSAs, so there are minimal administrative and compliance issues for employers.
Share the cost of health care benefits and give ownership to employees - An HSA gives your employees the ability to build a savings account with tax benefits and employees who own an HSA are more likely to be engaged consumers who ask about costs prior to making appointments, seek information about generic prescription alternatives and select lower cost treatment. HSAs are a great way to motivate your employees to take a vested interest in their health care choices and expenditures — a win-win for all.
At Aroostook Savings & Loan, we believe it’s important to help you and your employees effectively manage rising health care costs. That’s why we offer the Aroostook Savings & Loan Health Savings Account. It’s a tax-smart way for employees to save for qualified medical expenses that make sense now and later. Aroostook Savings & Loan is ready to help you and your employees to invest and save for your future. Come visit us today!