How can an employer afford to make HSA contributions for employees?
A. Because HSAs must be coupled with a high deductible health plan, the health insurance premiums can be substantially lower. Employers often find that these premium savings are large enough to cover the HSA contributions they make on behalf of their employees, without increasing their current outlay for health care benefits. This has been verified by the Treasury Department.
Related Questions
- Can an employee be eligible for other coverage from an employer and still be eligible to make or receive contributions to an HSA?
- Does an employer have to meet any nondiscrimination rules if it makes contributions to an employees HSA?
- How can an employer afford to make HSA contributions for employees?
