Why now is the time to include an HSA in your employee benefit package

With open enrollment season right around the corner employers are beginning to review their employee benefits for the upcoming 2020 year. With the ever rising costs of health care, both employers and employees are looking for ways to help control costs, and offering a Health Savings Account (HSA) is a great solution.

Looking to lower-cost HDHPs

Health insurance companies are starting to release their January 2020 renewals, and since HSAs must be paired with a high-deductible health plan (HDHP), now is the time employers should review the HDHP plan options their insurance carrier offers. Since HDHP plans cost less than other health plans, there’s a premium cost savings to both the employer and the employee. The Kaiser Family Foundation’s 2019 Annual Employer Health Benefits Survey reported that the average annual premium for employer sponsored health insurance in 2019 for single coverage is $7,188 and $20,576 for family coverage. They also found that the average premium for HDHPs was lower than the overall average for all plan types, at $6,412 for single and $18,980 for family. The report also noted that the cost of average premiums outpaced wage increases–single coverage premium increased 4% and the average family coverage premium increased 5% since last year, while wages only increased 3.4% and inflation increased by 2%.  Employers  can contribute the premium savings to their employees’ HSAs as a way to incentivize employees to enroll in the health savings plan. By selecting the HSA-qualified medical plan (HDHP) both the employer and employee will be able to save on premiums and contribute the savings to their HSA.

The triple tax advantage

HSAs provide participants a true triple tax-advantaged solution.  Contributions, investment earnings, and withdrawals when used for qualified medical expenses are all tax-free (any contributions not made pre-tax are taxdeductible). Since the employer and employee can contribute to an employee’s HSA on a pre-tax basis using a Section 125 plan they would also save on payroll taxes on those contributions.

BPAS offers a unique HSA solution that brings ease, reliability, and cost savings to employers and employees. The Roadways HSA is a vertically integrated HSA solution with the recordkeeper, administrator, clearing firm, custodial, and customer services all under one company. Our platform provides a cost-effective and worry-free HSA solution with efficiency, operational accuracy, superior customer service, and the highest levels of security.

The Roadways HSA offers many great features, such as:

• First dollar investing (no minimum balance required before being able to invest)
• Open Architecture
• Stable Value Fund- 2.70% minimum locked-n rate
• One-stop administration
• Designated plan consultant
• No hidden fees

If you would like to learn more about the BPAS Roadways HSA please call 866-401-5272 or email Hannie Spitzack, HSA Sales Relationship Manager at [email protected].