With the increasing costs of healthcare school districts are looking for ways to save money without sacrificing benefits for their employees. Offering health savings accounts (HSA) linked with a high deductible health plan (HDHP) has become a viable option for many school districts and employers across the country.
What is a Health Savings Account (HSA)?
An HSA is an individually owned tax-advantaged medical expense savings account available to eligible individuals enrolled in a high-deductible health plan (HDHP).
How does an HSA work?
An HSA is linked to a “high deductible health plan” (HDHP) and allows the account owner and the account owner’s spouse and dependents to use funds set aside pre-tax to pay for qualified medical, dental, and vision expenses.
Why should I offer HSAs in my school district?
HSAs come with a variety of benefits for both the employer and employee.
Employer HSA Advantages:
• Potentially thousands in tax savings! Employee’s pre-tax contributions are excluded from FICA taxes.
• Provide an affordable health care benefit to your employees that usually has a lower premium cost and lower annual increase than traditional health plans.
• Easy administration. HSAs are self-adjudicated, meaning that the employer spends less time administering the plan and more time on more important matters!
Employee HSA Advantages:
• Triple tax savings! Money deposited into an HSA is tax free, money used from an HSA for qualified expenses is tax free, and funds in an HSA earn interest tax free.
• HSAs are owned by the employee. That means that HSA funds can still be used after an employee leaves or retires from the district.
• Balances rollover from year to year (no use-or-lose rule).
Who is USBAFlex and why should I choose them to administer my district’s HSAs?
USBAFlex is a comprehensive health savings, flexible spending, and employee benefits service provider. What makes USBAFlex unique is that we were created to exclusively serve school districts and government entities. Because USBAFlex exclusively serves school districts, the plans, fees, and communication materials come with a deep understanding of your district’s needs and are tailored to serve you. USBAFlex understands how to communicate with your employees, how to provide outstanding support, and the need for timely responses to inquiries. Since 1985 USBAFlex has consistently provided superior customer service for school districts and government entities across the nation.
To find out how HSAs and USBAFlex can benefit your district click here.