As the pandemic highlights how quickly an individual’s health can deteriorate, enrollment in the good health plan has never been so vital.
While many employees choose their health care plans based on the plan that takes the least money from their paycheque, these lower cost options have good and bad consequences, namely health care plans. with high deductible (HDHP) accompanied by a health savings account, or HSA.
HSAs have many financial benefits as well as help employees look after their well-being. Money accumulated in HSAs is renewed every year, regardless of an employee’s job change. Contributions to an HSA are also beneficial and tax-free, reducing an employee’s income tax and allowing them to pay their medical bills tax-free. Plus, when an employee turns 65, they can then use that money for anything while paying regular tax rates on it.
HSAs require enrollment in a high deductible health plan, that is, any plan with a deductible of $ 1,400 or more for an individual and $ 2,800 or more for a family plan. According to the Kaiser Family Foundation, the average high deductible is $ 2,303 for a single plan, compared to $ 500 for a traditional PPO plan.
Read more: Unforeseen healthcare costs hurt employees. This is what Lincoln Financial is doing to help
To maximize the benefits of an HSA and HDHP and understand the costs, Employee Benefits News spoke with health experts to share key considerations employees should understand before enrolling.