EBSO, Inc. – A 90 Degree Benefits Company Blog

EBSO, Inc. – A 90 Degree Benefits Company Blog

Menu

Skip to content
  • Contact

2017: A Year for HSAs

March 21, 2017March 20, 2017ebsobenefits

HSAWhile President Donald Trump has talked about several remedies for healthcare, one he mentions often is expanding the use of Health Savings Accounts (HSAs) – consumer directed accounts that are typically paired with high deductible health plans (HDHPs). Like flexible spending accounts (FSAs), they offer a convenient way to pay for out-of-pocket costs like doctor visit co-pays and other qualified medical expenses.

No Use It or Lose It Rule

One big advantage HSAs offer is that account balances are not subject to the Use It or Lose It rule that applies to FSAs – surplus funds can roll over from year to year. The IRS maximum annual contribution in 2017 is $3,400 for individuals and $6,750 for those with family coverage under a HDHP. Individuals age 55 and older can contribute an extra $1,000. HSAs can be used to pay for qualified medical expenses, while surplus funds can grow and be used in the future. Employer contributions, where available, can go a long way in meeting future qualified medical expenses. According to the 2016 Devenir HSA Market Survey, nearly a third of all funds contributed to HSAs in 2015 came from employers, with the average employer contribution being approximately $850.

A Triple Tax Advantage

A HDHP with an HSA can make it easy to set aside pre-tax dollars through payroll deductions. Individuals can also fund an HSA with after-tax dollars, which can be taken as a tax deduction on their personal tax return. Finally, all contributions accumulate tax free and can be withdrawn tax free to pay for future qualified medical expenses, including in retirement. No federal tax is due on funds contributed to a Health Savings Account, and many states follow the federal tax law.

Looking ahead, we know that healthcare costs will continue to rise and the need to engage employees will grow. Regardless of actions taken by the new administration, we believe HSAs are a great way to help employees save for future medical expenses and better understand the importance of cost and quality in the process.

ebso-self-funding-works

Share this:

  • LinkedIn
  • Twitter
  • Facebook

Like this:

Like Loading...
EBSO, Health & Wellness, Health Costscosts, EBSO, employers, Flexible Spending Account, FSA, HDHP, Health Savings Account, healthcare, HSA

Post navigation

← Plans to Repeal and Replace the Affordable Care Act
Why sitting is the new office health epidemic →

Employee Benefits Solutions Experts

Count on EBSO to provide products and services that touch every type of benefit plan an employer, carrier or consultant may have. From self funded and fully-insured benefit plans to HR and Finance support, we deliver Benefit Solutions for Every Client, Every Situation, Every Day.

Enter your email address to follow this blog and receive notifications of new posts by email.

Recent Posts

  • Is Reference Based Pricing Saving Money?
  • Orders to Cut Drug Costs
  • How Healthy Are We?
  • Regulating Off-Duty Conduct
  • Approving a Vaccine

Posts by Topic

  • ACA Reporting (3)
  • Affordable Care Act (24)
  • Alithias (1)
  • Barcelona Creative Group (1)
  • Compliance Management Solution (3)
  • EBSO (7)
  • EBSO News (17)
  • Health & Wellness (181)
  • Health Costs (90)
  • Level Funding (3)
  • Minimum Value Plan (1)
  • Self Funded (2)
  • Self Funding (24)
  • TeleMedicine (6)
  • Third Party Administrator (4)

Contact EBSO

1-800-558-7798 or 1-800-486-7664
customerservice@ebsobenefits.com
marketing@ebsobenefits.com

Office Locations

Arizona
Illinois
Ohio
Kentucky
Minnesota
Wisconsin

Search Our Blog

Blog at WordPress.com.
Cancel

 
Loading Comments...
Comment
    ×
    %d bloggers like this: