The Benefits of Offering a Health Savings Account to Your Employees

As a business owner, having a healthy and productive workforce is essential for the long-term success of your company. Offering a Health Savings Account (HSA) is a great way to support the wellbeing of your employees with added values beyond what you might expect. An HSA provides an affordable option for employees to save towards qualified healthcare expenses, giving them access to high-quality care and financial security. In this blog, we’ll review the perks of offering an HSA and how it can benefit your workplace as a whole. 

With an HSA, employees can save and pay for their medical expenses with pre-tax dollars. This can lead to greater satisfaction in the workplace as employees feel empowered to make decisions about their own healthcare needs. Since HSAs provide employees with greater financial security, they enjoy peace of mind knowing money is safely set aside to help pay for medical expenses that arise. 

Employees who save money on their healthcare costs are more likely to stay with your company rather than seek one with a better benefits package. An HSA gives employees greater flexibility in healthcare options as it empowers a wide selection of providers and treatments. The freedom of choice gives your employees the chance to find a plan that meets their individual needs, enhancing satisfaction and loyalty. It’s this extra accommodation provided by an HSA that adds competitive draw for employers looking to recruit and retain the best of the best. 

With access to HSAs, employees can pay for preventative healthcare services like annual physicals and check-ups that help avoid more serious illnesses. They’re also able to take advantage of many services previously too expensive to cover out-of-pocket costs, such as counseling, which can improve the stress management and mental health of your employees. These additional services may help your staff remain healthier and more productive for longer periods of time. Likewise, employees with access to an HSA are likelier to stay home when sick rather than risk spreading their illness to coworkers. Keeping absenteeism down is no secret to maintaining productivity! 

HSAs are tax-advantaged accounts that allow employees to set aside pre-tax dollars for medical expenses, such as copays, coinsurance, and deductibles. They are funded by the employer, employee, or both, and contributions are not subject to federal income taxes. These breaks help businesses save on their payroll taxes, leading to lower long-term healthcare costs.  

Additionally, employees with access to HSAs tend to make more informed healthcare decisions. When encouraged to shop around for medical procedures and services, the most cost-effective options are likely to be selected.  

Since HSAs allow employees to save money for healthcare expenses on a pre-tax basis, the employee then pays less in overall income taxes. The employer benefit is that these contributions help reduce expenses associated with the company’s payroll taxes. Additionally, the pre-tax funds deposited into HSAs are not subject to the same limits that apply to traditional health insurance plans, allowing you to reduce employees' health insurance premiums without sacrificing coverage. 

Offering an HSA to your employees can reduce healthcare costs and insurance premiums while boosting the satisfaction, productivity, and retention of your valuable employees. These benefits help create a win-win situation for both your company and its workforce to enjoy. 

Ready to lower your costs and attract and retain the best of the best? Find out more about F&M Bank’s HSA options for business.