Health Savings Accounts (HSAs)
HSAs can help you reduce the cost of your employee health insurance benefits. In an HSA program, you provide a government-approved base health insurance policy with a high deductible for all medical procedures. Each employee then sets up a bank account to which he or she – and/or you, as the employer – can contribute money, which is used on a tax-favored basis to pay for approved unreimbursed medical expenses. Your employees keep whatever money is left over at the end of the year, giving them a strong incentive to spend money only on medically necessary procedures and treatments.