ORANGE, Calif.--(BUSINESS WIRE)-- As part of its commitment to help employers and individuals better understand the changing healthcare landscape, CHOICE Administrators® announced today the publishing of a new guide explaining the benefits of Health Savings Accounts. CHOICE Administrators is the nation’s leading developer and administrator of health insurance exchanges, providing HSA-compatible plan design options.
“More and more people are interested in combining a high-deductible health plan with a health savings account as a way to save money and have more control over their healthcare dollars,” said CHOICE Administrators President Ron Goldstein. “This new guide helps clarify how they can do that while also revealing how employers can lower their healthcare costs and support their employees’ health and well-being.”
A health savings account (HSA) is a tax-advantaged medical savings account available to those who enroll in a high-deductible health plan. These are plans with a minimum annual deductible of $1,200 for individuals and $2,400 for families. Such plans offer comprehensive benefits at lower monthly premiums, offering members a great way to save each month on healthcare.
Many individuals – more than ten million as of January 2010 – take some of those savings in their health premiums and contribute them into an HSA. Those dollars are not subject to federal income tax at the time of deposit and may be used to pay for qualified medical expenses at any time without federal tax liability or penalty. Funds not spent roll over and accumulate year to year. HSAs encourage saving for future healthcare expenses, allow the individual to receive needed care without a gatekeeper to determine what benefits are allowed, and make consumers more responsible for their own healthcare choices.
HSAs can save employers money as well because higher-deductible plans translate into lower healthcare premiums. Employers also like the program because, if they choose to do so, they can demonstrate a commitment to their employees by contributing funds to the employee’s HSA, which the employee can then use to pay for such medical expenses as check-ups, preventive care and emergency services. The money contributed can also help employees build a fund for future expenses or retirement.
“The laws regarding HSAs are changing, and it is important that both employers and their employees fully understand the incredible cost-saving benefits of HSAs,” said Goldstein. “The guide we’ve prepared covers everything in simple, easy-to-understand language – from how to set up an account to how to make withdrawals. We even spell out what are the allowable medical expenses that can be paid for through an HSA.”
Health insurance brokers and general agents can obtain the new guide, free of charge, by contacting [email protected]. Employers are encouraged to contact their licensed broker for more information.
CHOICE Administrators® Exchanges is the nation’s leader in developing and administering health insurance exchanges. Currently serving more than 10,000 employers and more than 150,000 members, CHOICE Administrators is a member of The Word & Brown Companies, the nation’s leading developer and administrator of consumer-choice exchange models. Among the products currently operated by CHOICE Administrators are the CaliforniaChoice® small group (2-50 employees) and mid-market (51-199 employees) private exchanges and Quotit, one of the nation’s largest individual/family proposal and online enrollment systems that generates 4.2 million individual health quotes annually. Further information is available at www.choiceadmin.com.
KEYWORDS: United States North America California
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