Health savings account

Employees can contribute tax-free money to the HSA, up to an amount set by the Internal Revenue Service (IRS) each year. As the employer, you may also add money to the account.

If there is not enough money in the account to cover certain qualified medical expenses, employees will have to pay the cost out of pocket until they meet their deductibles. They can later reimburse themselves from the HSA as funds become available.

Employers enjoy savings on premiums that a high-deductible health plan offers and can use that money to help fund their employees’ HSAs. Employers can also help fund their employees’ accounts using Anthem Health Rewards, which is available as a buy-up for large group and national employers.

Any funds left in the account from year to year are carried over and remain with the employee who owns them. If employees leave the company or change health plans, they will be able to take any remaining funds with them.

Employees will receive a debit card to pay for qualified medical expenses, such as doctor visits and prescriptions. The card provides a single access point to their HSA and any other spending accounts they’re enrolled in.

Employees can invest their HSA funds once their HSA balance exceeds $1,000. The interest they earn is tax-free.