Health Savings Accounts (HSAs)

HSAs are tax-advantaged accounts held by a bank or custodian. Employers and/or employees may contribute on a tax-exempt basis if the employee is covered by a qualified health plan. Unused balances roll over for use in subsequent years.

Benefits of this approach to employers include:

• Employers are not required to contribute to the HSA.
  
  
• Employer’s premium contribution may be reduced by adopting a high deductible.
  
  
• Employee ownership of funds creates a more responsible customer.
  
  
• Qualified plan requirements may result in more positive plan utilization.