September 2017 Volume 15, Number 9 | |||||
Switching to a High-Deductible Health Plan? Here’s How to Explain the ChangeHigh-deductible health plans (HDHPs) are gaining in popularity as a way for employers to save money and to give employees more say on how their health care dollars are spent. Many employees, though, are apprehensive about switching from a traditional insurance plan to an HDHP because it’s going to cost them more in out-of-pocket expenses. If you decide to go this route, here are a few points you can share with your employees to alleviate their concerns. HDHPs Are Similar to Traditional Insurance
An HDHP is a traditional health insurance plan that has higher annual deductibles and out-of-pocket maximums. This type of plan helps keep your monthly premiums down. An HDHP Will Save You Money
An HDHP premium is significantly less expensive than traditional insurance. Premiums generally increase each year, but they tend to have lower annual cost increases than traditional insurance. An HSA Gives You a Tax Advantage
If you qualify for this account, you can pay for health care expenses for you, your spouse and your dependents with pre-tax money — even if they are not covered by the HDHP. We will deduct the amount you request from your paycheck and put it in the HSA. You can increase or decrease the amount any time you like. The funds in this account will grow tax-free and will be available to you on a tax-free basis to pay your medical costs. Who Is Eligible for an HSA Advantage To be an eligible for an HSA, you must be covered under an HDHP. In addition, you:
An HRA Is Also a Great Savings Tool If you do not qualify for an HSA, you can still put money into an HRA. An HRA is an employer-funded tax-sheltered account that you can use to reimburse yourself for allowable medical expenses. You don’t have to use all of the money in your account before the end of the year, but an HRA account doesn’t earn interest and you’ll have to forfeit the money if you switch health plans. |
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Could Direct Primary Care Control Your Health Care Benefit Costs? Opioid Addiction in the Workplace: How to Help Employees Switching to a High-Deductible Health Plan? Here’s How to Explain the Change Great Reasons to Offer a 529 Savings Plan
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