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Why are Health Savings Accounts (HSAs) offered by employers?


The popularity of HSAs continues to rise, and all of the major carriers offer HSA-compatible high deductible health plans as an option today. The HSA is a portable bank account that is owned by each participating employee. To make or receive contributions to an HSA, the employee must be enrolled in the high deductible health plan. The employee can use the HSA to pay for unreimbursed health out-of-pocket expenses or save for future expenses. The advantages? The high deductible health plan lowers premium costs, while the savings accounts allow employees to set aside tax-free money and plan more carefully for the cost of treatment. HSAs are included in the Internal Revenue Code, and require close adherence to the tax regulations.

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