Clarity Benefit Solutions Shares Six Common Questions Employees Have About Health Savings Accounts (HSAs)
NEW YORK, Oct. 13, 2016 /PRNewswire-iReach/ -- Clarity Benefit Solutions simplifies online benefit administration for brokers, employers, and consumers. The company's technology and services are designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
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Chances are, your employees will have many questions about Health Savings Accounts (HSAs). Clarity Benefits Solutions discusses six common questions employees could have about HSAs.
1. What is an HSA? An HSA, or Health Savings Account, is an employee benefit program that allows employees to contribute their pre-tax money—through payroll deductions—to pay for a number of health care expenses. Employees must be covered by a High Deductible Health Plan (HDHP) to participate in an HSA.
2. Who is an eligible for an HSA? As mentioned above, and employee must already be enrolled in an HDHP. Other qualifications include the employee not have coverage by another non-qualified health plan (Medicare, TriCare, or a spouse's plan) and not being claimed as a dependent on someone else's tax return.
3. Can an employee open an HSA if the HDHP policy is not in their name? Yes. It is not necessary for the HDHP policy to be in the employee's name. As long as the employee meet the aforementioned qualifications, he or she is still eligible for an HSA even if the policy is under a spouse's name.
4. What can HSA funds be spent on? Eligible HSA expenses include deductibles, co-pays, prescription drugs, and dental and vision expenses. HSA monies cannot be used to for non-prescription medicine, insurance premiums, food, or tuition.
5. When are HSA funds available? Employees have access to their HSA funds as soon as money is placed into the account. And, contribution amounts can be changed at any time.
6. What happens to HSA funds if an employee leaves the company? HSA accounts are employee owned, and thus transferrable to new employers. They are also kept if the employee becomes unemployed. However, an employee can't contribute to an HSA if it is not part of a new employer's plan.
Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 7324288272, email@example.com
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SOURCE Clarity Benefit Solutions