Recent research reveals that 88% of employees considered health insurance as a top employee benefit that they wish to have.
This is not surprising considering the high costs of medical services for chronic illnesses. As an employer who wishes to promote company loyalty, have high employee retention rates and attract grade-A talent in a competitive market place, it is imperative to design and offer a benefits program that meets employee demands and benefits that they rank highly. Health care plans top the list.
What is HSA?
HSA—health savings accounts—is a tax-advantaged way to help employees meet medical costs and cover costs associated with health care. The funds from such a savings plans help in the purchase of medical drugs, and dental and healthcare. These accounts can be deposited with a specified amount by the employees themselves or the employers, and cover expenses that are not included in HDHPs (high-deductible health plans).
Advantages To An Employer Of Offering An HSA Policy
Consumer-driven: Well-reputed employers emphasize the need for consumer-driver plans when it comes to healthcare. By making employees responsible for managing their own healthcare plans, they can use the money to better facilitate themselves and their families. An accidental benefit of the HSA is that it lowers renewal plans for employees who may have an independent insurance plan.
Tax Advantage: HSA funds can be contributed by the employer and employees. These contributions are pre-taxed so pay roll taxes on these funds are not applicable. Such a system helps increase employee savings in the long run and offset costs to keep the HSA running.
Lower Costs: Healthcare premiums are a considerable cost for employers. According to Wall Street Journal, between 2000-2007 the costs associated with providing healthcare for employees doubled for companies.
HDHPs can be purchased for much cheaper than traditional health plans, and as some of the unused funds are deposited to the HAS, your employers enjoy a richer benefits program.
Healthier Workforce: According to McKinsey & Company, employees with an HSA plan were value-conscious and better informed about their health, prevention, wellness and showed signs of healthy behaviors.
Retirement: Medical costs are a big expense after retirement. The funds in HSA can be used for medical expenses after retirement. Contributions by the employee and interest generated on those contributions is tax-free which means the HSA can act as a powerful tool to save money for employee once they’ve retired.
Want To Design an Effective Employee Benefits Program? Contact JS Benefits Group!
Whether you are looking to create or revise your benefits package, our expert team at JS Benefits Group can help.
As a true and trusted employee benefits and wellness consulting company, JS Benefits Group provides tailor-made solutions to businesses in the Mid-Atlantic region.
With over two decades of experience designing practical, customized and effective benefits programs for businesses of all sizes, JS Benefits Group is your ultimate stop for a holistic Employee Health Benefits Programs.
Call (877) 355-6070 to schedule a consultation.
