Business Solutions: Health Savings Accounts

What is a Health Savings Account?

An HSA is a form of consumer-directed health coverage pairing a high-deductible plan with a tax-free savings account for medial expenses. They are designed to reduce health care insurance costs for employers and employees.

Health Care Crisis for Small Businesses

Employer health care costs have risen an average of 15% annually over five years to an average of about $700 per month per employee according to surveys by the Kaiser Family Insistute and The National Association of Health Underwriters. This is why 47% of America's small business owners provide no health care coverage at all. Offering a high-decuctible health care plan with an HSA available from Shelby County State Bank offers employers a new alternative.

Benefits of an HSA?

Can be used in combination with a high-deductible health plan
Contributions are tax-dedutible
Payouts for qualified medial expenses are tax-free
Can "roll-over" year to year to create a sizable retirement next egg
Contributions by employers are exempt from payroll taxes

There's no better time than the present to offer this benefit to your employees. If you would like more details on offering Health Savings Accounts, contact our IRA specialists Stefanie Kramer or Wava Bails at 755-5112. They can also refer you to a local insurance agent who offers high-deductible health insurance plans.