Lower Health Care Premiums

Health care premiums are on the rise; that’s no secret. However, Health Savings Accounts may provide more affordable premiums while providing your employees with an attractive employee benefits plan. HSAs combine a high deductible health plan with a tax favored health savings account, which is used to help pay expenses towards the deductible.  Have your employees compare their current plan cost with a health savings account approach by using our Online Calculator.  When comparing, remember that any amount invested in your HSA should not be considered an "expense" since you keep all unused funds. Over the life of your Health Savings Account, you could save thousands of dollars.  Use our HSA Growth Calculator to calculate how your HSA will grow based on your expected health care costs.

Less Administrative Responsibility

Unlike other health care financing options, you are not responsible or liable for your employee’s account once it is opened. You do not have a claims administration or adjudication process and do not have to maintain records for the IRS. However, our preferred vendor, HSA Bank, has knowledgeable, dedicated Client Assistance staff who are available to assist your employees with any questions.

Eligible HSA Medical Expenses

Eligible medical expenses are defined as those expenses paid for care as described in Section 213(d) of the Internal Revenue Code. Additionally, the IRS has allowed some over-the-counter drugs to qualify as eligible medical expenses. ¹

The following lists may help you determine whether an expense is eligible or not. These lists are provided with the understanding that HealthPlansOnline.com and our affiliated companied are not engaged in rendering tax advice. These lists are to serve as a quick reference. For more detailed information, please refer to IRS Publication 502 or contact a tax professional.

Miscellaneous Links

• 2012 Concise 4 page HSA summary piece (pdf)
• 2011 Concise 4 page HSA summary piece (pdf)
• 2010 Concise 4 page HSA summary piece (pdf)
• Bank Report Dec 2010 on HSA investments (pdf)
• Calculator - Employer Savings (This calculator helps estimate the value of creating a High Deductible Health Plan (HDHP) with Heath Savings Accounts (HSA) for your employees)
• Calculator - Contribution (This Health Savings Account (HSA) calculator determines the amount you are allowed to deposit into an HSA account for the current tax year.)
• Calculator - Savings Goal (Are you looking at the Health Savings Account (HSA) as a retirement account? This calculator will help you determine what you need to do in order to reach your goal.)
• Calculator - Accumulation (Use this calculator to help you determine how much your Health Savings Account (HSA) will be worth over time.)
• Calculator - HSA vs Traditional Plan (Compare an High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to a traditional health plan.

Internal Revenue Service (IRS) Forms

** Please note that there may be more recent versions of the forms below.  Please contact your accountant for confirmation on which forms to complete

1. IRS Form 1040 — HSA deduction on Line 25
2. IRS Form 8889 — HSA Instructions
3. IRS 2007 Proposed Reg. Regarding Employer Comparability — IRS Proposed Regulations Regarding Employers Contributions to the HSAs of its Employees.
4. IRS Form 5498-SA Contribution Report
5. IRS Form 1099-SA Distribution Report
6. Instructions to 1099-SA and 5498-SA
7. Instructions to IRS Form 8889
8. IRS Publication 502 Medical and Dental Expenses. — IRS guidelines on qualified medical expenses.
9. IRS Publication 969 HSAs and Other Tax-Favored Health Plans. — IRS high level overview of health savings accounts.
10. IRS Notice 2004-2 — early IRS guidance on health savings accounts.
11. IRS Notice 2004-23 — safe harbor guidelines for preventative care that may be provided by an HDHP without satisfying the minimum deductible requirements.
12. IRS Notice 2004-50 — additional IRS guidance on health savings accounts.
13. IRS Notice 2005-8 — IRS guidance on a partnership’s contributions to a partner’s HSA and an S-corporation’s contribution to a 2-percent shareholder employee’s HSA.
14. IRS Notice 2005-86 — IRS guidelines regarding eligibility for a health savings account during a cafeteria plan grace period.
15. IRS Notice 2007-22 — IRS Guidance on rollovers of FSA and HRAs to HSAs.
16. IRS Revenue Ruling 2005-25 — clarification on spousal eligibility for an HSA when other spouse has nonqualifying family coverage.
17. IRS Revenue Ruling 2004-45 — interaction between HSAs and other health arrangements (FSA as “other health plan”).
18. IRS Notice 2008-51 — IRA to HSA Direct Transfer Rules.
19. IRS Notice 2008-52 — Testing Period Rules.
20. IRS Notice 2008-59 — General HSA Guidance.
21. IRS Form 5329 — Use this form to pay a penalty tax on excess contributions to an HSA.
22. IRS Form 5329 Instructions

Health Savings Account - Banks

There are a variety of banks that want your business. We have found that HSA Bank offers great 800 number support, low fees, and easy administration with their online capabilities.