What is an HSA?
It’s a different approach to your medical insurance costs.
Try an innovative way to make this work in your favor:
List Bill is not group insurance but is individual coverage on a List Bill basis.
- Reduces cost…No more group insurance rate increases
- First-dollar coverage for employees
- Employees manage their own health care. No insurance company dictates quality of care
- Major Medical Insurance to cover big bills
- You choose your doctors and specialists
Health Savings Account
- Beginning in 2004, money deposited into a Health Savings Account (HSA) is 100% tax deductible
- The account can be funded up to the chosen deductible each year
- Money going into an account with Medical Savings Insurance, grows at 5% interest
- The money can be used for any IRS-approved medical expense (See IRS publication 502B. To receive your free copy, call 1-800-TAX-FORM.) Elegible expenses include: dental, vision, acupuncture, etc.
- The money grows with tax-deferred interest. You can earn up to 5% interest on your monthly balance
- After age 65, the money can be taken out for normal living expenses or can be used to purchase qualified long-term care insurance, receiving benefits tax-free
How does it work for small group employers?
- Employer funds HSA account for employees and takes 100% deductions.
- Employee pays for his or her own health insurance (could be under Section 125). Employer deducts premium from employee at pay periods.
- Employee may use HSA side fund to pay small medical bills through the year.
- Medical Savings Insurance Company bills the employer each month for monthly premium (that has been deducted from the employee) and for HSA (funded by employer)
- Employee gets to keep all monies left in HSA side fund at the end of the year… acts like a bonus.
- This process starts all over next year.
