Health Savings Accounts (HSAs)
The HSA has two distinct parts: a high deductible health insurance plan and a savings account that is used to pay qualified medical expenses. The HSA-compatible high deductible health plan (HDHP) is rapidly becoming a popular alternative to other insurance plan designs, with nearly six million Americans currently covered by an HSA-compliant HDHP.
Assurant Health has been an industry leader in creating HDHPs for Americans since the plans were first introduced in 2004. The Assurant Health HSA plans are integrated plans, with the savings account and the high deductible plan administered together. The following is a brief overview of Health Savings Accounts:
Tax-favored accounts. Contributions are tax deductible and withdrawals for qualified medical expenses are not taxable at the federal level. Interest and earnings are not taxable while in the account.
Set up in conjunction with the purchase of a high deductible health insurance plan.
Savings account is designed to help employees pay for healthcare expenses that are not covered by the insurance plan.
Employer contributions to employees’ accounts are not taxable to employee and are deductible to employer.
Accumulated funds can be used to supplement retirement (taxable as income at that time).
An HSA offers flexibility for the employee because it is owned by the employee and is portable. HSA contributions can be made by the employer, employee, or a combination of both.
With an HSA, your employees can:
Spend tax-free dollars for qualified medical expenses
Save money on a tax-deferred basis
Use the fund as a long-term savings vehicle
Carry unused account balances from year to year (no, us-it-or-lose-it regulation)
Assurant Health's HSA-Compatible HDHP Highlights*
- Lifetime Maximum — up to $10 million
- Annual Deductible Choices — Individual: $1,500 up to $5,000;
- Families: $3,000 up to $10,000*
- Benefit Percentage Choices — 50% to 100%
- First-dollar coverage preventive care (deductible waived until maximum amount payable is reached)
*Not all plan payment combinations are available.
Frequently Asked Questions about Health Savings Accounts