Health Savings Accounts (HSAs)

A Health Savings Account (HSA) with an accompanying high-deductible health plan (HDHP) offers employers an excellent chance to save on taxes and lower health care costs.

Serving Your Needs. MedBen administers HDHPs for self-funded employers and has available a fully insured HDHP option for employers located in Ohio, Indiana, West Virginia or Michigan. With the self-funded approach, MedBen works closely with employers and their benefits consultants to determine the best plan design for your HDHP. Better yet, MedBen can integrate your HDHP with other forms of consumer-driven health plans (CDHPs) you may offer.

The MedBen fully insured HDHP features a broad spectrum of health benefits while meeting all regulatory guidelines. Additionally, MedBen includes a discount pharmacy card to minimize employee out-of-pocket expense and a value-added vision program.

For those employers who qualify, split funding is also available for your HDHP. With our MedBen Split Solution option, you can partially self-fund your benefits to share in any claim savings while maintaining your stop-loss protection.

Extra Added Incentive. To give employees an incentive to open an HSA, you can take advantage of MedBen’s turn-key HSA service. This complete HSA package offers participants: hassle-free HSA set-up with a nationally recognized banking institution; sound HSA investment advice and oversight; debit card capability for easy HSA access; online account management for convenient HSA tracking; and extended customer service support.

This comprehensive HSA service helps encourage HDHP participation, which benefits both the employer and employee in the long run.

How Does It Work? An HSA resembles a Flexible Spending Account (FSA) in that the employee owns the account, and both you and your employees may make tax-free contributions. However, the FSA can be used in conjunction with a variety of plan designs, whereas the HSA must accompany an HDHP. HSA funds can be applied to this deductible as well as other qualified medical expenses, COBRA coverage, Medicare and retiree health insurance premiums.

Higher Deductible, Bigger Savings. An HDHP is characterized by a set minimum deductible and a set maximum out-of-pocket limit. The HSA then can be used to cover qualified medical expenses incurred underneath the deductible level, including pharmacy benefits.

HOW THE HSA OPTION WORKS

HEALTH SAVINGS ACCOUNT (HSA)

The employee or employer can make
pre-tax contributions up to the lesser of
100% of the health plan deductible
or
$2,900 for singles / $5,800 for families

Qualified medical expenses paid from the HSA will apply toward the deductible.

HIGH-DEDUCTIBLE HEALTH PLAN

The plan must feature an annual deductible of at least
$1,100 for singles / $2,200 for families
and a maximum out-of-pocket of
$5,600 for singles / $11,200 for families

(Deductibles and contribution amounts 
effective January 1 -- December 31, 2008.)

Want to Learn More? MedBen continually hosts employer seminars on consumer-driven health plans (CDHPs) throughout the Midwest. Over the past few years, these free half-day programs have been delivered to hundreds of employers exploring the cost-saving advantages of CDHPs. Our programs are offered through MedBen University, our professional education division and feature speakers with 15 or more years of benefits experience and specific expertise in their respective topic. For more information on these popular seminars, contact acsteen@medben.com.

For more information about HSAs and high-deductible health plans, e-mail our marketing department at marketing@medben.com.