Health Savings Accounts (HSA)

A Blue Cross and Blue Shield of Nebraska high deductible health plan paired with a Health Savings Account (HSA) could be the employee benefit solution you’re looking for. Plans featuring an HSA give employees more control over how their health care dollars are spent while keeping health plan costs down.

An HSA is a trust account that can be funded by an individual and/or employer to pay for qualified out-of-pocket medical expenses. An HSA is available to individuals who are covered by a qualified high deductible health plan (HDHP).

The HSA:

• Allows funding flexibility. Both employees and employers can contribute dollars to the account.
• Offers tax savings. Earnings from HSA accounts accumulate tax-free. Distributions are tax-free as long as they are used to pay for qualified medical expenses.
• Is flexible. HSA dollars can be used for a wider range of health-related expenses that are not typically covered by other health accounts, such as purchasing long term care insurance.
• Balances roll over from year to year. Allows consumers to build up money in their accounts when they have low health care needs, leaving them with more money to cover out-of-pocket expenditures when the need arises.
• Is portable. Workers who move from job to job take the account with them. The account is owned by the individual.
• Puts individuals in charge of their health care purchasing decisions.

Employers benefit from offering an HDHP with an HSA because premiums for the HDHP are generally lower than a traditional plan and any employer contributions made to HSAs are exempt from federal employment taxes.

Employees benefit from an HSA in three ways:

1. Contributions are tax deductible or tax-free when payroll deducted.
2. Interest accrues tax-free.
3. Withdrawals for qualified medical expenses are tax-free.

To assist your employees in making health plan and health care decisions, several web-based tools are available, including:

• CoverageAdvisor^SM helps determine which health plan best meets their needs.
• Healthcare Advisor^SM helps employees better understand their treatment options to make an informed decision.
• Treatment Cost Advisor^SM helps evaluate the cost of a condition or service.
• A health risk assessment helps employees evaluate their current health status and take action for improving their health.
• Educational health and wellness information, self-help tools and discounts on many health care services through BlueHealth Advantage.

Contact your broker to find out more about establishing and enrolling your employees in a Blue Solution Consumer-Driven Health Plan and about our HSA administrator options.