What is a Health Savings Account?
A health savings account (HSA) is a plan
designed to help employees manage the rising costs of health care
by allowing them to set aside money to pay for out-of-pocket medical
expenses and to save for retirement. You can think of it as a personal
savings account for medical expenses – unused funds will earn interest
until they are withdrawn at retirement.
Participants in an HSA must be enrolled in a
High Deductible Health Plan (HDHP) and not covered by any other
non-qualifying health plan.
Employees set aside money on a pre-tax basis – this means as long as funds are used for qualified expenses, employee won’t pay income taxes on it.
Help Your Employees Increase Their Take-Home Pay
In the example below, Jane estimates
she will spend at least $2,300 on medical expenses for herself and her
dependents next year. She decides to set aside $2,300 in her Surency AdvantagePlus HSA. Here's how she can save:
How Does it Work?
Participating in a Surency AdvantagePlus HSA is easy.
1. Once employees have enrolled and set their annual election amount, that amount will be automatically taken out of their paychecks in equal increments throughout the year before they pay federal, state and FICA taxes on that amount of income. Or, employees may write a check to be deposited into their HSA.
2. When an employee is ready to use the money in his/her HSA for a qualified medical expense, they just swipe their Surency AdvantagePlus Benefits Card.
3. Any unused funds in an HSA will roll over at the end of the year and will continue to earn interest until the funds are withdrawn for medical expenses or until the employee turns 65 years old, when funds can be withdrawn for any reason without incurring penalties.
Consumer-Defined Investment Sweeps:
Surency offers consumer-defined investment sweeps for our HSA members. This feature allows employees to increase the balance maintained in their Cash Account to whatever level they decide. More cash means more dollars available immediately to pay medical expenses. Learn more about consumer-defined investment sweeps.
We understand employees may be hesitant to set aside funds pre-tax to use at a later date for approved expenses. We've mapped out every aspect of the consumer experience down to the smallest detail to ensure employees understand the benefit - guaranteeing a positive experience for both employees and employer.
Take a peek at two pieces of our custom employee communications. View a list of qualified medical expenses or use our Election Worksheet to estimate health care costs.
Want to Learn More?
Contact our Sales and Marketing team at 316.264.8413 or email firstname.lastname@example.org.
The savings amounts in the example above are provided by Surency for illustrative purposes only. You may save more or less based on your own tax situation. Some states do not recognize these tax exclusions for this program. No part of this website is tax, financial or legal advice. You should consult your own legal and tax advisers regarding your personal situation and whether this is the right program for you.