- For Employees
- For Partners
Whether during the coronavirus pandemic or in “normal” life, health savings accounts are good for everyone. It’s a bold statement, but a true one—based in facts we’ll explore in this post.
Regardless if an individual is young and new to the workforce or quickly approaching retirement, an HSA can play a critical role in helping them take control of their healthcare costs while bettering their short and long-term financial health. This is especially true for anyone who’s lost their job or dealt with other employment-related challenges due to the COVID-19 crisis, since HSAs are portable and can be brought along to their next employer or maintained independently. More on that below.
Despite all this, as a broker, you may think that HSAs are only viable options for certain demographics—the very healthy, very sick, very young or very old. That’s simply not the case. HSAs work for everyone, regardless of age, income level or health circumstance. Let’s look at how and why.
Combining an HSA-eligible high-deductible health plan (HDHP) with a health savings account is a simple equation with a powerful outcome for those of all ages, income levels and health circumstances. Using an HSA with an HDHP allows accountholders of all kinds to take full advantage of three types of tax savings, while also having a dedicated savings account to use for present and future medical expenses. Even better, health savings accounts like Bend HSA allow for tax-free account growth through interest and investment opportunities.
Let’s take a moment to break down why an HDHP plus HSA is such a powerful combination for anyone who leverages the two together.
First and foremost, the most lucrative HSA advantage is its “triple tax savings.” What that means is that accountholders save on taxes in three ways:
Along with these important tax advantages, there are many other HSA benefits you as a broker can use to sell HSAs to your clients. Using an HSA with an HDHP offers flexibility and convenience to all kinds of accountholders in a number of ways—many of which are critical for individuals dealing with the coronavirus pandemic:
Rising healthcare costs continue to impact employees and employers. More costs are getting pushed to employees as premiums rise and the out-of-pocket costs for healthcare steadily jump. Employers are being forced to cut other expenses, reduce wage increases and oftentimes reduce health insurance benefits altogether.
But HSAs can provide a much-needed win-win for both employees and employers.
HSAs counteract the long-term impact of rising healthcare costs on both sides. Employers can control their costs through an effective employer-sponsored HSA program, and employees benefit from lower premiums and more control over their own healthcare, short and long-term, plus the triple tax advantage and other benefits that come along with having an HSA.
It’s always a good idea to plan ahead, and it’s never too early to plan for retirement. Regardless of an accountholder’s age or proximity to retirement, if they invest wisely in their HSA, it can pay off in more ways than one. Not only are HSAs the best way to build equity for future healthcare expenses—quite frankly, they’re the only way to do so in such a tax-advantaged manner.
The more an accountholder contributes to their HSA, combined with the tax-free growth of their HSA investments and interest, the more they build equity and set themselves up to be able to fund their future medical expenses exclusively through their HSA. In fact, with the right HSA strategy, an accountholder won’t even need to tap into any of their other investments for medical costs in retirement—meaning their 401(k), IRA, pension or other funds will be freed up to be used for all the other expenses that come with retirement.
And when you consider that a married couple will on average need $285,000 for medical expenses throughout their retirement, you can see just how important it is to educate your clients on HSAs as a long-term investment vehicle beyond just a fund for yearly medical costs.
With Bend HSA, you help your clients take advantage of all an HSA program can offer—without adding to their workload or causing additional headaches in an already difficult time. We offer a simple-to-use, secure health savings account with a superior user experience and unmatched customer service and support—for clients and customers of all ages and income levels. Because remember, HSAs work for everyone.
Connect with us today and let’s build HSA programs for your clients together.