HSA Administration Company, Clarity Benefit Solutions, Offers Tips for Helping Employers See the Value of HSAs

NEW YORK, May 29, 2019 /PRNewswire/ -- HSA administration company, Clarity Benefit Solutions, offers tips for brokers to help employers see the value of HSAs.

Health Savings Accounts (HSAs) are a win-win benefit that helps employees set aside pre-tax funds for health-related expenses. However, many employers don't realize that is beneficial for them as well. A number of misconceptions and fears have kept HSAs from being widely adopted. But with the proper information and guidance, employers can truly see the value in implementing HSAs in their employee benefit programs.

One valuable benefit of HSAs is the reduction in healthcare costs. There is a one-time reduction in base premiums when switching over from non-HSA qualified plans. There is also a slower year-to-year premium savings that grows over time. If employers are smart, they can reinvest their premium savings into their employees' HSA accounts, which increases employee engagement within the program.

Additionally, HSAs allow employees to take control of their health-care decisions, which is extremely valuable to employers. These plans are often High Deductible Health Plans (HDHP) which means employees are responsible for more medical costs up to a certain point. In turn, they tend to make more cost-effective healthcare decisions; for example, they may go to an urgent care center rather than an emergency room in a certain situation. They will also be more likely to choose options that are HSA eligible, since they won't have out-of-pocket costs. Both of these scenarios lower the employee's healthcare costs, as well as the employer's.

Finally, HSAs are the only triple tax-advanced account in existence. Funds are contributed tax-free, grow without tax, and are not taxed when withdrawn. This is a unique edge that employers should be taking advantage of. Their payroll taxes decrease significantly when employees contribute to an HSA. Employees can also use the HSA as an effective way to invest money for the future.

Ultimately, getting employers to see the value of HSAs depends on a broker's ability to show the employer that HSAs are simple and mutually beneficial.

About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

SOURCE Clarity Benefit Solutions

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