Health Savings Accounts

Small businesses have been the hardest hit by the increase in health insurance costs, and there seems to be little an owner can do. Health Savings Accounts (HSAs) give the small business a sensible method to offer high-quality health care coverage at a reasonable price.

HSAs are portable, tax-advantaged accounts that can be likened to a medical IRA: unused money is rolled over from year to year, growing through interest earnings and it can be used to pay for a variety of health and wellness related products and services without the disadvantage of a "use it or lose it" policy.

HSA-eligible health plans dramatically reduce healthcare costs for US business, with some studies citing costs that are 20% - 30% lower than average insurance premiums (Source: "AHIP HSAs and Account-Based Plans," 06/2006). Part of these savings should be used to provide the employee with a recurring contribution to their HSA representing a portion of their deductible. This practice allows the employer to recognize significant cost savings while reducing the out-of-pocket healthcare cost risk and providing a portable pool of healthcare funds managed directly by the employee.

Centric Bank was the first Harrisburg-area bank to offer Health Savings Accounts, and we have the expertise and experience to help you transition to offering HSAs to your employees. In addition, our in-house insurance agency can assist you with determining if HSAs are a good match for you and your business, and they will help you to obtain the appropriate health insurance to work for you.