Category: INO.com Contributors

Introduction

Corporations are always searching to decrease costs and reduce expenditures pertaining to medical expenses. More companies than ever are now offering High Deductible Health Plans (HDHPs) with a companion Health Savings Account (HSA) option. Two-thirds of companies with 1,000 employees or more are offering this HDHP/HSA option. The popularity of the HDHP/HSA combination has increased substantially over the past decade. As of 2014, 17.4 million people were enrolled in HDHP/HSA compared to a mere 3.2 million in 2006. In brief, an HDHP is a pre-tax medical plan that requires the employee to shoulder the cost of medical expenses out-of-pocket up front to a defined dollar amount to satisfy a deductible. Once this deductible is reached the traditional medical plan provides coverage. In addition to reducing medical expenses by shifting the cost burden to the employee, the employer circumvents the 40% excise tax that the Affordable Health Care Act will impose on high-value insurance plans beginning in 2018. These plans may be a win-win for both the employer and employee over the long-term. Continue reading "As 2016 Rolls In Are You Utilizing A Health Savings Account (HSA) As A Second Retirement Account?" →