Health Savings Accounts

Health Savings Accounts (HSA) were created with the passage of the Medicare Act of 2003, replacing Medical Savings Accounts (MSA). The HSA is a two-component health plan consisting of a high deductible health plan (HDHP) and a deductible, tax-deferred savings account. This acount may be employer or employee funded, and is separate from the insurance policy, which must be HDHP-qualified, either as an individual-owned or employer-sponsored group plan. Almost anyone can take advantage of this new form of health insurance coverage.

Group HDHPs are available for employers of all sizes. HSA plans intended for Business Groups of One (BGOO) are medically underwritten, just like with an individual medical plan.

Carriers in the group market include Assurant Health, United Healthcare, Aetna, Anthem, Rocky Mountain Health Plans, Kaiser Permanente, and others. We represent all group carriers and will assist you with determining which is the best fit for you and your company.

How does it work?

Reimbursements from the savings account, used to pay for out-of-pocket medical expenses, are received 100% tax free.
Account contributions are based on the annual contribution limits set by the Treasury.
Catch-up contributions are also allowed for individual's age 55 or older.
Contributions levels will be adjusted yearly - email us for current levels.
Benefits are payable once the individual or family deductible is met yearly. An HSA insurance plan is either an individual plan or a family plan (2 or more) for purposes of meeting the deductible limit.
Preventive care services and accident riders, if available, are not subject to the deductible.
Funds in an HSA savings account may be invested as the account holder sees fit, including CDs, money market and mutual funds, stocks, bonds, or other securities, using an HSA custodian.

What can be paid for out of the savings account?

"Eligible medical expenses" allow for tax-free reimbursements on items of traditional medical care not typically covered by a health insurance policy, such as dental, vision, chiropractic, mental health, long term care services and insurance premiums, etc. preventive care services and accident riders, if available, are not subject to the deductible.
Health Reimbursement Arrangements (HRA) may be better suited to some employers. Not sure which works best for you? Give us a call to discuss at 303-422-1660 or 877-865-8701.

For additional information:

HSA Bank - full service HSA custodian with on-line banking, internet trading, and thousands of mutual funds!
Notice 2002-4- Request the text of the IRS guidance, with Q&A, from the Treasury Department.

Order a Quote for HSAs or other plans. Find out if you, too, can save money!