The “next frontier” in consumer-driven health care benefits, a Health Savings Account (HSA) benefits both employers and employees. Created in response to ever-increasing health care costs and concern about the vast number of Americans without health insurance coverage, Congress created HSAs to be a financial incentive for employers to provide group health insurance coverage to their employees, while encouraging consumers to reduce the overall cost of health care by passing most first-dollar costs down to the consumer.
An HSA resembles an IRA, but it is intended to be used to pay for health care expenses. In order to set up an HSA, the individual must be covered by a health insurance plan with a high deductible (an HDHP). The high deductible feature in the group health plan requires the employee to pay most first-dollar expenses. An HDHP also have a maximum out-of-pocket in order to limit the individual exposure.
An employer sponsoring an HDHP will pay lower group health premiums, resulting in an increase in net revenue. Employees can contribute to an HSA to convert the higher out-of-pocket costs from after-tax to pre-tax.
As one of the nation’s largest independent actuarial and employee benefit firms, our team delivers personalized analysis and recommendations. As both practitioners and consultants, our team will assist your executive team in designing an employer-specific benefits program.
Our clients regularly recognize us for the level of customer service we provide, as well as our attention to detail, our independent voice and the reliability of our administration services. Our focus is our client.
Each client at Nyhart has a dedicated team of plan advisers and administrators. We provide you direct access to your team so your questions and issues can be handled confidentially by a team that knows your benefit program and can immediately help resolve your issues.
Are you interested in learning how Nyhart may be able to provide a long-term partnership in the design, management and/or administration of a benefits program for your company or government agency? Please call us at (317) 845-3500 or email us at email@example.com today and we will be in touch quickly. We want to earn your business.