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August 24, 2011
Health Savings Account Balances Blooming This Summer
Employers are leaning toward high-deductible health plans for employee benefits, and Health Savings Accounts (HSA) balances increased this June.
With the current recession, firms have reduced their workforce and the benefits they offer employees. Some companies have been able to maintain health benefits for workers via high-deductible plans combined with Health Savings Account. Commonly known as an HSA, this form of savings account offers tax-advantages in exchange for saving to cover medical costs.
According to the Denevir Group, LLC, balances held in Health Savings Accounts increased to $11.7 billion this summer, which is a 31-percent increase over last year. Likewise, the total number of Health Savings Accounts jumped another 28 percent from the same time last year. That resulted in approximately 6.3 million Health Savings Accounts.
Last year, the average HSA balance was around $1,640. This year it's climbed to $1,845. Total HSA assets are expected to reach $13.4 billion by the end of this year.
Whether you’re a business owner or self-employed, investing in an HSA could save you money. Investing in HSA Plans can cut the cost of health care coverage, reduce taxes and give tax-free earnings. Consultations can be arranged to help you compare your HSA options.
Posted by Wiley Long at August 24, 2011 10:32 AM