The IRS recently announced new contribution limits for health savings accounts for 2015. According to Business Insurance, the maximums will increase by $50 for single coverage and $100 for families. This means that single professionals can save up to $3,350 per year and families can keep $6,650 in their HSAs. The IRS adjusted the allowable amounts based on fluctuations to the overall cost of living.
Guidelines
To participate in HSA plans, the employer needs to meet compatible guidelines within high-deductible medical plans. Through the employer's payroll application, an automatic pre-tax HSA deduction can easily be made or if a person sets up their own plan through a third-party vendor, they will be able to deduct the HSA plan from their taxes at the end of the year.
Benefits
According to the Mayo Clinic, there are a number of benefits to having an HSA. First, it allows workers to find the best treatment for their needs. Second, people can determine the best ways for using their savings, meaning they can hold on to their money for emergencies or spend it on basic care, depending on their needs. Third, employers can also contribute to HSAs, but staff members keep the money regardless of whether they switch jobs or stay in their current roles.
How employers can get involved
Employers can create HSAs for staff members following specific criteria and guidelines. While individuals are responsible for their own accounts, companies should consider offering these accounts for a couple of reasons:
- Employees want to know that their businesses care about their health.
- Employees can save to meet their medical deduction and other health-related expenses.
- Workers appreciate the ability to save pretax money
You can combine HSAs with your organization's group health insurance and wellness program to ensure that your workforce has all the tools necessary to take care of themselves and prepare for medical emergencies or basic treatments. Putting these three elements together can go a long way toward helping your staff stay healthy.