Health Savings Accounts Benefit Employer and Employee

Companies are in business to make money.  One of the ways of doing this is by reducing cost.

A health savings account is a good way to reduce cost.

As a result, many businesses are offering high deductible insurances to their employees.

To pay the high deductible, they enroll their employees in health savings accounts.

Funding for the health savings accounts are done by several ways.

• By the company which enjoys a tax deduction.
• By the employee
• Put away pre-tax income
• Hsa grows compounded tax free
• Withdrawals are tax free once used for allowable expenses

• Combination of employer and employee contribution
• They both enjoy tax benefits