Massachusetts HSA Plans for Small Businesses
Health Savings Accounts (HSA)are another great option for Massachusetts small business owners.
With an HSA Plan, a personal employee owned bank or investment account complements the group's federally qualified high deductible insurance plan (HDHP).
Either the employer or the employee or both can make tax deductible contribution (similar to an IRA contribution) into the HSA account up to 100% of the deductible each year (or to a maximum this year of $2700 for an individual or $5400 for a family for 2006). Deductibles beginning as low as $1100 for an individual and $2200 for a family are available.
Proceeds grow and compound tax FREE while they remain in the account.
Medical expenses and prescriptions drugs are covered 100% after the deductible (or total out of pocket responsibility) is met.
Withdrawals from the HSA account for medical and related expenses by the employee are tax free. Unused HSA funds can be used for living expenses at retirement paying income taxes on proceeds based on the account holders income tax rate at that time.
When you consider that the typical Massachusetts Business is overpaying on group health insurance premiums by about $3000 to $6000 per employee per year (or more), for benefits that go unused year after year, HSA plans enable you to keep that money and instead of sending it to an insurance company and never getting it back, you keep it and watch it accumulate.
In some cases, first year premium savings generated from the much lower cost HSA qualified insurance plans are enough to fully fund the employees HSA account with money to spare!. Once the account is fully funded, the employee then has the equivalent of 100% coverage!
With an HSA you can say "Good bye" to Unlimited Co-pays and ridiculous health insurance costs! Say "HELLO" to 100% coverage and affordable health insurance premiums which is sometimes even as little as 50% of the cost of a typical $10 co-pay plan -- for better worst case scenario protection!. Say "Hello" to control over healthcare costs and say HELLO to protection against rising health insurance premiums because as you begin to be able to over fund your HSA account, each year taking a nice tax deduction , you become less dependent on the insurance company. When your insurance rates go up, you can simply raise your deductible to keep your premiums from rising as much..