There’s a practical alternative for managing health care costs — and it’s available through your credit union. A Health Savings Account (HSA) combines a tax-exempt savings account with certain high-deductible health insurance plans. The idea is that the health insurance plan is there to cover catastrophic expenses such as emergency care and hospital stays, while the money in the savings account can be used to pay for basic healthcare needs. The money employees put in an HSA earns interest, and if the employee doesn’t use all the funds this year, the balance carries over for future years.
One thing that makes HSAs attractive to both business owners and employees is it allows participants to control their spending. With traditional health insurance plans, participants tend to benefit the more they use their plans. They may go to the doctor when they really don’t need to, because they know the insurance will pay for the visit. With the HSA, that visit essentially comes out of their own pocket. It gives them an incentive to make more affordable choices, such as going to a walk-in clinic instead of an emergency room.
Another advantage is that HSA funds can be used for a wide range of qualified costs, from doctor visits and insurance co-pays, to prescription drugs, eye care, dental and orthodontic services, and many others. HSAs can also help with retirement planning. After you reach age 65, you can use the funds in your account for any purpose without paying taxes or penalties.
The Indiana Members Credit Union HSA has no minimum balance or initial deposit, and no monthly fee, offers a free IMCU Health Savings Debit Card and free Online Banking, too. Not to mention, IMCU currently has one of the best rates in town, at 1.50% APY*.
In addition, IMCU representatives will come on site to answer questions employees may have and take care of opening their accounts, on the spot, saving time and resources. Alternatively, your employees can open their HSA at any IMCU branch. If you’d like to know more about making this affordable option available to your employees, call Gina Terril, Business Development Manager, at 317.554.8163 or email@example.com.
1.5% Annual Percentage Yield*
- No application or setup fees to open the account
- No monthly or annual maintenance fee
- Competitive rate of return
- Free eStatements
- Funds can be withdrawn at the branch, ATM, or by using your HSA debit card
- Account activity can be reviewed online