Health Savings Accounts (HSAs)
A Health Savings Account (or HSA) is a savings account funded by an employer and/or employee. All HSA contributions are tax-exempt for both parties. Contributed funds can be used tax-free for eligible employee, spouse and dependent medical expenses.
HSAs are not a stand-alone health coverage option but rather a supplemental means of planning for medical expenses not covered by the company's insurance plan by providing tax-free funds to cover unexpected or uncovered medical costs. These accounts are often effectively combined with High Deductible Health Care Plans (HDHPs).
HSA funds may be used for non-medical purposes in an emergency, but they will be taxed as gross income with an additional 10% penalty. Any unused funds can be rolled over from year to year and employees can take their remaining balance with them if they leave the company for any reason.
Insurance Administrator of America offers a range of traditional HSA options as well as the following enhancements: Click here to view the Liberty Health Savings Welcome Guide.