Every business must create affordable health benefits for its employees. This not only retains and attracts talent to the company but also ensures employee safety.
One way to do this is to open a Health Savings Account (HSA) to allow your employees to set aside pre-tax funds to pay for qualified medical expenses. HSAs are designed to reduce health care insurance costs for employees as well as employers. They reduce their overall healthcare costs by putting untaxed funds into their HSA to pay for expenses before their deductible.
However, choosing the right HSA plan for your small business might not always be easy. Hence, we have compiled this guide to assist you.
Your Guide To Choosing the Right HSA Plan for Your Small Business
Here are four steps you need to follow in choosing the right HSA plan for your small business:
Step 1: Review Your Budget
The first thing you should do is review your budget. Many small businesses sacrifice a lot of health benefits just because they are high priced. However, some options such as Health Reimbursement Arrangements (HRAs) and health sharing plans can fit even the smallest company’s budget. Before selecting a plan, you must determine how much you are willing to contribute for health benefits.
Step 2: Consider Employees’ Annual Incomes
Your employees’ current annual incomes might affect the affordability of their healthcare. For example, some HRAs are not compatible with subsidies. This can force your employees to have to choose between coverage options. If you know exactly how much everyone on your team is currently making, you can find the right HSA option for everyone.
Step 3: Consider your Employees’ Coverage Needs
Before selecting an HSA plan, it would be best to speak to your employees about their health needs. Ask questions that will help you understand how often your employees use their coverage. Their answers will help you determine whether the HSA plan you consider would help your employees pay for their healthcare.
Step 4: Talk to Your Personal Advisor and Build Combinations
Employee health benefits do not need to be one-size-fits-all plans. With HRAs, group health insurance, and health sharing plans, you can create a flexible benefits package that will motivate your employees to take ownership of their health decisions. Before you build different combinations of these benefits for added convenience, talk to your personal advisor about offering balanced coverage without spending a lot of money.
Key Takeaways To Choosing The Right HSA Plan For Your Small Business
As insurance premium costs continue to rise year after year, HSA Plans have emerged as an effective way to stay insulated against unexpected expenses. There are several benefits of contributing to an employee HSA for your small business.
First, HSAs offer tax advantages to the employer. Any contributions made towards these HSAs are eligible for a federal tax deduction. As a benefit option, HSAs can save companies a lot of money on payroll taxes and FICA taxes (instead of a salary increase).
Unlike some health insurance benefits, there is no contribution minimum when it comes to an employee HSA. This makes employee HSAs possible for even the smallest companies, which can start small and increase their contribution amounts over time.
Health savings accounts and our various combination plans make it possible to save pre-tax dollars for health care expenses. A tax-advantaged savings structures make HSA plans a valuable part of any retirement portfolio and an attractive workplace benefit.
Another benefit of HSAs is that funds stay with the employees, even if they stop working for you. HSAs are owned and administered by the employee. This means they can take it with them if they change employers, which is a huge value for your employees.
Most HSAs are paired with high deductible group insurance, but they are now available alongside popular insurance alternatives. For example, small business HRAs can reimburse individuals for the cost of their own HSA-qualified coverage. Some health sharing plans can be compatible with HSAs, by combining them with low-cost MEC preventative care insurance.
Get in touch with us today to discuss all of your options regarding choosing the right HSA plan for your small business.
Health insurance costs will not decrease anytime soon, and Americans will continue to seek alternative ways to pay their bills and save on monthly expenses. Though Health Savings Accounts are not brand new, they are now more accessible than ever for small businesses. Whether you still need to choose an HSA-qualified plan option or you’re looking for more info on how to set up an employee HSA, we can help. Let us show you how you can reap the benefits and be your guide into the world of HSAs.
Choosing the right HSA plan for your small business is essential to give your employees peace of mind. We offer three different HSA plans: HRAs for Small Businesses, Health Sharing Plans for Employees, and Group Health Insurance. Get in touch with HSA For America today for better coverage and save money with affordable healthcare solutions.
To know more about each of these plans, visit our website today. You can also call us at 800-913-0172 for more information or request a free quote.