November 29, 2017
HSAs: cost-savings, investment return, greater consumer control
HSAs bring big tax benefits
Everyone likes to be in control, whether that means driving a car, choosing a restaurant, or where we spend our money. HSAs allow employees to take the driver’s seat when determining where their healthcare dollars are best used. Equally beneficial, employer premiums decrease when they purchase an HSA-compatible Consumer Driven Health Plan (CDHP), like BlueSolutions.
As you already know, HSAs are a tax-free investment account whose proceeds are set aside exclusively for qualified medical expenses. But when you’re selling the idea of CDHPs to your clients, below are some tips you may find valuable for those discussions:
Good for your clients
- Significant healthcare cost savings and tax benefits.
- Easy administration. We take care of all the setup.
- Cost savings. Our HSA-qualified plans offer lower premiums.
- Tax savings. Both employer and employee HSA contributions can provide tax savings.
- More engaged employees. Higher deductibles promote smarter healthcare choices.
Good for employees
- More spending power. Since they’re able to use pre-tax dollars, it’s like a built-in discount.
- Tax savings. Contributions can lower income tax; interest earned is tax-free; and there is no tax when the money is used for qualified expenses.
- Convenience. They can pay bills and make additional contributions through bcbsri.com.
- More ways to pay. Online, debit cards, and checks.
- One customer service number to call for info on both their health plan and their HSA.
Selling the concept of CDHP’s with HSAs to your customers is a win for them and a win for their employees.
Watch It and Learn
Our HSA partner has developed this great resource for you to share with your clients. This tool explains HSAs in a way that makes it easy for members to understand.
Contact London Health’s dedicated employer and broker service department for service needs.
401-435-4700, option 6
This communication is provided for informational purposes only, and is not intended to provide, and should not be relied on for tax or legal advice. You should consult your own tax, legal and accounting advisors for advice on eligibility, tax treatment, and restrictions. HSAs are not insurance.