Should your clients be looking at HSA's?

Many questions arise as to whether your clients should be looking at HSA's. It is not a simple answer, depending on many factors.

For example:

Is the employer paying 75% or more of the total medical insurance premiums � in this case an HSA might help to reduce the total outlay.

Are many of the employees' young and healthy and very rarely see a doctor � in this case an HSA can serve as a low cost alternative.

Are the employees looking for alternatives to save additional tax free funds � then the HSA route is a possible alternative.

Are there many families with high use of physician services � in this case a fully insured medical plan may be the better choice.

Is an employee under the chronic care of a physician and in need of maintenance prescriptions � in this case a fully insured plan with Rx coverage may be the better choice.

Remember, there are many scenarios and not one fits all but perhaps a combination of an HSA plan with a fully insured plan should be offered on a Point of Enrollment basis.

Always keep in mind that an HSA is a Health Savings Account that may be opened by the individual ONLY if they have a qualified High Deductible Insurance Plan. IRS form 8889 will be required to be completed each year with the individual's Federal Income Tax Filing.

Please call us at FILCO to discuss the HSA plans and let us help you and your client to make the best decisions.