Friday, March 1 is National Employee Appreciation Day, and if you’re looking for a way to show your employees that you truly value them — and help them out financially — it’s hard to beat offering Health Savings Accounts (HSA).
Sure, you could bring in a box of donuts or pass out gift cards, but HSAs will help make healthcare costs more affordable for employees, give them incentives to stay healthy, and reward them by providing additional funds for retirement. They also allow employers to offer a very attractive benefit while lowering overall costs.
In simple terms, an HSA is a special savings account your employees can use to pay for their healthcare needs. Employers offer HSAs in conjunction with high-deductible health plans that cover care for catastrophic needs such as accidents and serious illnesses. When the employee goes to see the doctor or picks up a prescription, he or she can pay for it using the HSA, typically by using a special debit card linked to the HSA.
How does that help to control healthcare costs? It’s simple. When you offer a normal healthcare plan, most employees don’t think twice about the cost of care, because insurance pays for most of it. So, they may go to the emergency room when an urgent care facility would be a better choice or get a costly prescription for a name-brand drug when a generic equivalent would be a more affordable option. But when they pay with an HSA, they become more aware of the costs and tend to spend more wisely. One national study found that HSA users are 50 percent more likely to ask about costs before obtaining treatment — and three times as likely to choose a less costly treatment option.
HSAs reward employees for saving money, because any contributions they don’t use, and interest they earn on those contributions, accumulate tax-free. They’ll be able to use what they save for qualified medical expenses later in life — and after retirement, to buy Medicare supplement coverage or pay for non-medical expenses without a tax penalty.
Learn more about the advantages of HSAs and how easy it is to offer this powerful savings tool to your employees by contacting Gina Terril at 317-554-8163 or firstname.lastname@example.org.