Pub. 2 Issue 1

30 31 www.glancda.org SPRING 2014 Call us for a Free consultation: 888.959.2869 Cost Employee Perception Healthcare Reform HR Compliance Employee Communication Health Risk Score Let us Fix your Employee Benet Problems, whether they be: Many consumers are eager to learn more about health savings accounts (HSAs), which continue to generate buzz as a growing trend in health care coverage. The general assumption is that a finan- cial tool with this much potential must be complex and difficult to understand. However, HSAs are simple to outline, and can be broken down into a list of ten basic points for consumers to eas- ily digest. 1 HSAs fund health care needs The HSA is first and foremost designed to fund health care expenses in conjunction with a high deductible health plan (HDHP). An HDHP is a requirement to set up an HSA. The HSA is a savings account that secures pre- tax dollars in a fund for future medical needs, and helps meet the deductible on one’s health insurance plan, should something happen that takes medical expenses beyond what is readily af- fordable. 2 HSAs utilize pre-tax funds HSAs may be set up through em- ployers or through financial in- stitutions like banks, insurance compa- nies, or third party administrators. Con- tributions to HSAs through employers are set up as pre-tax investments. HSA accounts created through financial insti- tutions are designed so that consumers can take an “above-the-line” deduction on personal taxes. One asset for many is that taxable income is decreased, so fewer taxes need to be paid out. 3 HSAs come with significant premium savings over traditional insurance plans High deductible health plans also come with much lower premiums than a tradi- tional plan. This is especially apparent to someone who pays the premiums all year long but doesn’t actually go to the doctor or utilize medical services very often. For this person, the premium can feel like money out the window. Based on premium savings alone, some HSA consumers see 20 to 40 percent savings each year. 4 HSAs offer expanded coverage options for consumers Unlike typical insurance plans that have a highly negotiated list of medical prod- ucts or services that are covered, HSAs allow many additional health-related expenses. So doctors’ visits, hospital expenses, and prescriptions are covered, but coverage also extends to some over- the-counter drugs, dental and vision services, and certain “non-traditional” treatments such as acupuncture and deep tissue massage. 5 HSAs allow negotiating power to secure discounts on medical services. Because an HSA is a “cash” account, it empowers consumers with an option to negotiate pricing on many medical 10 Reasons to Love a Health Savings Account BKCG offers outstanding representation to auto dealers and their owners. In fact, BKCG has the largest jury verdicts in California for dealers against manufacturers. Legal services include prosecution and defense of manufacturer disputes , strategic defense of consumer litigation , dealership real estate acquisition and sales , and employment law . Call Alton G. Burkhalter at BKCG today to discuss winning legal strategies for your business. 2020 Main Street, Suite 600, Irvine CA 92614 949.975.7500 www.bkcglaw.com S TART SMART. F I N I S H S T RONG . OUR STRATEGY FOR SUCCE S S OC_1209040_BKCG_auto_7x4.75.indd 1 10/10/12 1:34 PM  10 Reasons — continued on page 32