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Health Savings Account (HSA)

As healthcare costs continue to soar, finding ways to offer affordable health benefits to your employees is a persistent challenge. Now you can leave employees with more spending money per paycheck while they save money on out-of-pocket healthcare expenses with a Health Savings Account.

An HSA is a tax-advantaged savings account that is used in combination with a High Deductible Health Plan (HDHP) and gives your employees a new way to manage healthcare costs. They can use the HSA funds to cover qualified medical expenses from co-payments at the doctor's office to pharmacy bills, dental care, vision care, and more.

The HSA account is funded by pre-tax contributions by the employee. Employers and other third parties also can contribute to the account. The employee determines the amount of money that is withheld each paycheck before payroll taxes are deducted. This gives employees more take-home pay, while you, their employer, pay less in FICA and FUTA payroll taxes. When an employee incurs a qualified medical expense, they can pay using the Bern & Pugh, Inc. prepaid benefits card, online bill pay or other methods.

If the employee doesn't have enough money in their HSA to cover a medical expense, they can make a partial payment and pay the difference using another method. Unlike a flexible savings account (FSA), there is no "use it or lose it" condition. Any unused funds remain in the account and continue to accrue interest until used.

More information on HSA plans can be found on the U.S. Department of Treasury web site at (Hint: Search on HSA).

Forms & Brochures:Forms

Employee Portal:FSA Employee