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One Way to Solve the High Deductible Dilemma

If you’re a business owner, you want to provide your employees with a group healthcare plan that meets their needs and helps them to stay healthy. But of course, you also must consider your own budget. With the cost of health insurance rising each year, providing a top-tier health insurance plan might be impossible for some small business owners.

That’s why many employers opt for low-premium, high-deductible healthcare plans. These are still a valuable benefit for your workers. However, many people with such plans have reported that they experience difficulty reaching their deductibles, and therefore truly reaping the full benefits of their plans. While low premiums are nice, those higher deductibles can place a bit of a burden on your employees.

There is one way around this problem. When you add a health savings account (HSA) to your benefits package, employees can save pre-tax dollars toward their healthcare expenses (including that big deductible). The HSA helps them to budget and save for out-of-pocket costs, while at the same time providing a valuable tax benefit.

Even better, if the money in an employee’s HSA isn’t used that year, they retain the money. Each year, unused funds roll over into the next year (tax free), and more.

A health savings account is a good work-around for high-deductible plans that might frustrate your employees. And better yet, all of the money they save is theirs to spend on healthcare expenses if and when they arise.

It’s easy to see why HSAs are becoming more popular with small and we’ll help you determine whether your company is eligible to provide this benefit to workers.