Employee Health Savings Accounts
Employee-owned and customer-inspired, our approach is personal and tailored, focusing on individual needs rather than institutional norms.
Health Savings Account Essentials
If you offer a high-deductible health plan (HDHP) to your employees, consider pairing it with health savings accounts (HSAs).
HSAs are tax-advantaged accounts available to employees enrolled in an HDHP, used to pay for qualified medical expenses. They can be funded by the employee, the employer, or both, with annual contribution limits for individuals and families.
Unused funds roll over year-to-year, and the employee owns the account, allowing the earnings to grow tax-free.
The Eleos Difference
Whatever your employee benefit priorities may be, you’ll find our prices competitive, our fees clear, and our deep industry relationships enabling us to go above and beyond, delivering year-round value. This means you can worry less and accomplish more.
Our authentic and transparent approach to employee benefits puts you and your people at the center of the process.
Eleos’ team of seasoned health insurance specialists takes the time to understand your unique needs, presenting options that make sense for your situation.
And we don’t stop there.
Once you’ve decided on a plan, we provide resources to educate your employees on their benefits and ease the transition.
Talk to an HSA Specialist
Caring for your business starts with caring for your people. At Eleos, we care for both.
A great business thrives on great employees and the relationships they build with your customers. With the health of your business and your employees in mind, we get to work.
Because when you take care of your people, everything else follows.
How Does an HSA Work?
Unlike their flexible FSA counterparts, HSAs have more rigid requirements.
Eligibility:
Only members of a high-deductible health plan (HDHP) are eligible for an HSA.
The HDHP must be the only health care plan carried by the employee.
Medicare recipients and those claimed as dependents on another disqualifying policy are not eligible.
Functionality:
If you qualify for an HSA, it functions similarly to a flexible spending account (FSA). HSA funds can be accessed using a special health savings debit card or through employee reimbursement after filing a claim.
Unused money at the end of an HSA plan year can typically be rolled over into the next plan year.
Self-Employed Workers:
While an employer must set up an FSA, a health savings account can be set up by any individual enrolled in a qualifying high-deductible health plan.
Contribution Limits:
HSAs have slightly higher contribution limits compared to FSAs. While FSAs cap contributions at $3,050 for individuals and families, HSAs allow for contributions up to $4,150 and $8,300 respectively.
Employee Questions, Your Answers
If you decide to offer HSAs, your team may have questions. Here’s a primer to help you give them the information they need.
How to Use a Health Savings Account
An HSA functions like a checking account, providing an account holder with a special debit card that can be used to access funds at the point of sale using a PIN or signature for verification.
Qualifying out-of-pocket medical expenses incurred by HSA account holders are eligible for reimbursement if the card wasn’t used to pay at the point of sale.
HSA funds can be used to pay for qualifying medical, dental, and vision expenses for the account holder, their spouse, and dependents. Additionally, HSA funds can cover deductibles and copays.
Which Items are HSA-Eligible?
In addition to co-pays, deductibles, and direct medical expenses, health savings account funds can be used to purchase medical equipment, prescriptions, and select over-the-counter (OTC) items.
Some items on this list are only HSA-eligible when ordered by a doctor. Most health savings accounts require a Letter of Medical Necessity (LMN) from a primary care physician confirming a medical need. A full list of HSA-eligible expenses can be found here.
Some HSA-eligible items include:
OTC Drugs Prescribed by a Doctor
Carpal Tunnel Wrist Supports
Prescription Medication
Arthritis Gloves
Hot/Cold Packs
Contact Lenses
Wheelchairs
Humidifiers
Sunscreen
Eye Drops
First Aid Kits
Crutches
Respirators and Oxygen
Diagnostic Devices
Physical Therapy
CPAP Devices
Hearing Aids
Bandages
Flu Shots
Ear Plugs
Walkers
Insulin
X-Rays
Our team of employee benefits specialists is here to make your life easier.
If you’re an employer considering offering a health savings account, health insurance, or another plan to assist your employees with medical expenses, we’re here to help.
