A Health Savings Account (HSA) is a savings account in your employee’s name that allows him or her to save for future medical expenses. Structured as a tiered interest-bearing checking account, the Merchants Bank HSA offers the return of a savings account with the convenience of a checking account. HSAs must be paired with a qualifying high deductible health plan and may be a win-win for your business and your employees. Here’s why:
Lower costs and less administrative oversight. While many health insurance options cost employers millions of dollars each year, the High Deductible Health Plan you pair with an HSA may cost considerably less. According to a Towers Watson/National Business Group on Health study, 74% of businesses expect to offer the combination of a high deductible health plan and a health savings account as their only plan option in 2015. In addition, you can decide if your employees or both your business and your employees will make contributions to the account. Merchants Bank does not charge set up or administrative feeds to open HSAs, like some banks do. Offering HSAs require the least amount of management by your business as our staff and your employees handle the majority of the details from opening the account to making withdrawals.
Employees more engaged in health decisions. Traditionally, employers have covered the majority of healthcare costs, but HSAs put financial responsibility and control in the hands of your employees. Due to this shift, many employees are more thoughtful about their healthcare decisions. A 2013 study by BenefitWallet sites that 44% of employees with an HSA said they monitor their health care costs more now than before they opened their HSA and 51% said they set aside more money to cover potential medical expenses. HSAs give your employees the opportunity to control how they use and spend money in the healthcare system.
To learn about Merchants Bank’s HSA options for your employees, contact one of our Personal Bankers to schedule an appointment today.