As the price of health care continues to increase faster than the rate of inflation, both monthly premiums and average deductibles are also increasing. Many employers have turned to high deductible health plans (HDHPs) to reduce premiums. When paired with a Health Savings Account (HSA), an HDHP can save employees money on their monthly premiums and allow them to pay for their health care with pre-tax funds.

Despite this win-win prospect, there are a few cautions for employers and employees with HDHPs. Because of the tax laws surrounding eligibility for HSAs, employers should be careful offering free or low-cost health care perks—such as onsite clinics or telemedicine. Employees need to be careful if they have other health coverage or change their coverage level during the year.

Foster & Foster works with employers throughout the U.S. to design, implement, communicate, and manage successful employee benefit cost control strategies. For more information about whether an HDHP/HSA is right for your organization, contact us at info@foster-foster.com. If you’d like guidance with HSA compliance, contact Janet Stebbins at janet.stebbins@foster-foster.com. For assistance with employee education on HSAs, contact Robin Schwartz at robin.schwartz@foster-foster.com.