Health Savings Accounts (HSAs) are an important part of the trend toward Consumer-Directed Health Plans. Since their introduction in January 2004, the benefits of HSAs have created a lot of excitement.
HSA Benefits for employers include:
- More direct control of costs for company health insurance benefit programs
- Reduced health insurance premiums on high deductible plans
- Reduced worker's compensation and social security tax based on gross payroll
HSA Benefits for individuals include:
- Tax-free way to accumulate wealth and manage health expenditures
- Contributions not subject to withholding for income tax or employment taxes
- Funds may be used for a variety of medical services that may not be covered by traditional health plans
More information about HSAs can be found from the following resources.
About HSAs from the US Treasury Department
All About HSAs from the US Treasury Department (PDF)
Frequently Asked Questions from the US Treasury Department
HSA Road Rules (PDF) from the HSA Coalition
Review Qualified Medical Expenses (PDF) from IRS Publication 502
