Health Savings Accounts are best described as a cross between a 401(k) plan and a Medical Reimbursement account. Like a Medical Reimbursement Account, participants contribute to their HSA with pre-tax contributions and can make tax-free withdrawals for eligible health related expenses when they are needed.

Health Savings Accounts offer significant advantages including:

• Funds in an HSA may be invested as the account owner chooses, just like in a 401(k) plan. Earnings grow tax-free and are held in trust by an independent third party.
• HSA’s have no “use it or lose it” feature. Contributions continue to accumulate and earn interest each year.
• HSA withdrawals are tax-free as long as the withdrawals are used for health related expenses (non health related withdrawals are subject to taxation and a 10% penalty).
• HSA’s are portable – meaning an employee can take it with them.
• Upon death, the HSA can be transferred tax-free to a spouse.

The HSA market consists of two very different types of consumers: Spenders and Savers.

• “Spenders” include employees who may elect to replace their Medical Reimbursement Account with a Health Savings Account given the fact that they no longer need to contend with the “use it or lose it” feature.
•  “Savers” include employees who want to take advantage of the pre-tax contribution, interest earnings, and tax-free withdrawals, to use their Health Savings Account as a mechanism to fund their post retirement health care costs.

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Product Alternatives

Alliance Benefit Group offers two comprehensive Health Savings Account product alternatives designed to meet the needs of both types of consumers.

“Spenders” product includes…..

• No minimum balance requirement.
• An interest-earning account.
• Participant “SmartFlex^®” debit card or disbursement by check or direct deposit.
• 24/7 account access via the Internet.
• Quarterly account statements.

 “Savers” product includes…

• No minimum balance requirement.
• An interest bearning account.
• A menu of 11 investment fund options.
• 24/7 account access via the Internet.
• Online transactional capability.
• Quarterly account statements.
• Disbursement of funds by check or direct deposit.

Alliance Benefit Group, in collaboration with your staff, will establish the objectives for your Health Saving Account and determine the design that best meets your objectives.

Services

We offer a complete range of services including:

• HSA design
• Participant communication
• Initial enrollment
• Claims processing
• Quarterly statements
• Payroll integration
• Participant debit cards
• Processing all changes requested by the employee
• Providing enrollment data to the appropriate service providers

The Alliance Benefit Group Advantage

• Our HSA can be partnered with any qualifying high deductible health plan.
• No minimum balance requirement.
• Alliance Benefit Group can help you tailor your benefit package to allow HSAs to work with your existing benefits.
• HSAs offered within a Section 125 Plan can be more flexible and convenient for an employer.