HSA Resources for Groups / Companies
The number one concern of businesses today is ever-increasing health insurance costs. We feel your pain. You’ve been absorbing most of the premium increases and your employees are enduring higher deductibles and co-pays. We've found that consumer-driven health plans, specifically HSA-qualified health plans, offer the best antidote for these problems and others plaguing our current healthcare system.
How Can an HSA-Qualified Health Plan Help?
HSA-qualified health plans are nothing more than a different way for your employees to pay their smaller medical bills, while having an affordable health insurance policy for larger medical expenses. Most major health insurance companies now offer HSA-qualified health plans with much lower monthly premiums. Most of this premium savings can then be deposited into each employee’s HSA to help them pay for day-to-day, qualified medical expenses (hyperlink) with pre-tax dollars, at the insurance company’s PPO discount. These include expenditures that count towards your insurance deductible, as well as a tremendous number of things that do not count towards the insurance deductible such as dental, vision and even some over-the-counter medications.
In other words, instead of “pre-paying” an insurance company to help pay your smaller medical bills, you raise your deductible into an umbrella-type policy, which saves a tremendous amount of premium for HSA deposits. Now your employees have control of paying their smaller medical bills out of their HSA accounts. Whatever they don’t spend, they keep.
The Three Moving Parts
Most traditional health insurance plans are made up of a fixed annual premium and three moving parts that you are required to pay for each person listed on the policy... the deductible, co-insurance and (never-ending) co-pays. When combined, and added to the annual premium, these components make up each employee’s total-out-of-pocket liability. However, since co-pays do not typically count toward out-of-pocket maximums, we have seen simple co-pays add up to thousands of dollars per year above an individual’s expected out-of-pocket maximum.
Due to government mandates, HSA-qualified health plans are much simpler. In most plans, you have a much lower premium and only one moving part, a calendar-year deductible. That’s it. Once that deductible amount is reached, most plans pay 100% for the rest of the calendar year (the employee pays no more out-of-pocket). When combining the lower premium with the single deductible, their total-out-of-pocket liability is usually much lower than traditional health insurance plans.
In order to make the transition to consumer-driven health plans with you and your employees, you need a partner that is an expert in this field. Click here to learn about the services available to you through OFM Benefits Consulting.