MedCost Benefit Services - Benefit Administation

Health Savings Account

Many employers offer a High Deductible Health Plan (HDHP)

High Deductible Health Plan (HDHP)

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An HDHP usually has a lower premium because of its higher deductible level, such as $1,100 for an individual or $2,200 for a family. It provides coverage for the individual or family only after the deductible is met. The exception to this can be preventive care procedures, such as annual exams, immunizations, and routine prenatal care, which may be paid at 100% regardless of whether the deductible has been met.

choice to allow their employees more control over health care costs. Members covered under this plan type may be eligible for a Health Savings Account (HSA), a savings and spending account designated for medical expenses. For employees, HSA contributions, interest, investment earnings, and qualified distributions are tax-exempt. HSAs provide tax advantages to employers, too, because they pay reduced FICA taxes as a result of reduced gross pay. If you are considering this option, MedCost Benefit Services can take care of all your HSA administration needs, from administering the high deductible plan to serving as a single point of contact for HSA payments and account management.

MedCost clients enjoy the privileges of our integrated partnership with HSA Bank, a division of Webster Bank, N.A., one of the 50 largest banks in the United States. Through this relationship, our clients receive self-directed investment options through TD Ameritrade Corporate Services and access to stocks, bonds, and over 11,000 mutual funds. HSA Bank can also utilize an employee’s own investment resources, leading to potentially limitless investment opportunities.

Benefits of an HSA:

Funds earn interest.
Unused funds remain in account and rollover from year to year.
Funds can be invested in stocks, bonds, and mutual funds for greater earnings.
The account is fully portable. An individual owns and manages his/her own account, regardless of job changes.
Contributions, interest and investment earnings, and qualified distributions are exempt from federal income tax, FICA tax, and state income tax (for most states).