What is an HSA?

It's a different approach to your medical insurance costs.

Try an innovative way to make this work in your favor:

List Bill is not group insurance but is individual coverage on a List Bill basis.

• Reduces cost...No more group insurance rate increases
  
• First-dollar coverage for employees
  
• Employees manage their own health care. No insurance company dictates quality of care
  
• Major Medical Insurance to cover big bills
  
• You choose your doctors and specialists

Health Savings Account

• Beginning in 2004, money deposited into a Health Savings Account (HSA) is 100% tax deductible
  
• The account can be funded up to the chosen deductible each year
  
• Money going into an account with Medical Savings Insurance, grows at 5% interest
  
• The money can be used for any IRS-approved medical expense (See IRS publication 502B.  To receive your free copy, call 1-800-TAX-FORM.)   Elegible expenses include: dental, vision, acupuncture, etc.
  
• The money grows with tax-deferred interest.  You can earn up to 5% interest on your monthly balance
  
• After age 65, the money can be taken out for normal living expenses or can be used to purchase qualified long-term care insurance, receiving benefits tax-free

How does it work for small group employers?

1. Employer funds HSA account for employees and takes 100% deductions.
2. Employee pays for his or her own health insurance (could be under Section 125). Employer deducts premium from employee at pay periods.
3. Employee may use HSA side fund to pay small medical bills through the year.
4. Medical Savings Insurance Company bills the employer each month for monthly premium (that has been deducted from the employee) and for HSA (funded by employer)
5. Employee gets to keep all monies left in HSA side fund at the end of the year... acts like a bonus.
6. This process starts all over next year.

Please feel free to contact me for addtional information.