Texas Group Health Saving Accounts

Group Health Savings Accounts, or HSA plans, are an important new option for Texas employers and their employees. An HSA is a savings account established exclusively to pay for qualified medical expenses on a tax-free basis. A Health Savings Account must be used in conjunction with a qualifying High-Deductible Health Insurance Plan (HDHP). These plans are beneficial to both the employer and the employee because the premiums usually cost less than a standard PPO or HMO plan.

The high-deductible insurance plan works with the HSA to help pay for employees covered medical expenses. The Health Savings Account is then established by employees to pay for qualified medical expenses.

Group HSA plans offer many advantages to the employer, including lower premiums for group health insurance, tax savings for contributions made by the employer, and a new investment vehicle for their employees.

When first introducing an HSA option for their group health plan, many employers choose to contribute a small amount into each employee's Health Savings Account to get them started. Contributions to the employee's HSA by the employer is tax-deductible to the employer. Funds contributed into the HSA by the employee are tax-deductible to the employee.

Consumer Benefits Group, your Texas Group Health Insurance Broker, can help you to set up an HSA plan for your small business. If you are switching from a standard PPO or HMO plan, we recommend you offer a Dual Option Plan, giving employees the choice between selecting the HSA plan or paying a bit extra for a standard PPO if they prefer that. Employees like choices, and it will help them to become accustomed to a new concept in group health insurance. We find that most employees will usually select the base plan offered by the employer -- but giving employees a choice shows them they are valued by their employer.

If you business does not offer a 401K, SIMPLE IRA, or other savings vehicle for your employees, offering a group HSA plan can be a great way to encourage your employees to invest and save for their future. Some employers set up matching contributions for dollars that employees invest into their individual HSA. Your Consumer Benefits Group agent can explain the many options and help you determine what works best for the goals at your company.

Consult with a Texas Group Health Insurance Agent
about a Group HSA option for your company today.
Just call 817-249-8600.

HSA articles

• Texas Health Savings Accounts Information
• HSA - Frequently Asked Questions
• Long-term Benefits of HSA plans
• HSAs for individuals
• Group HSA plans