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The ongoing shift to consumerism has created real advantages for many employees, such as Health Savings Accounts. HSAs are very attractive – contributions are made pre-tax, earnings accumulate tax-free and withdrawals for most healthcare expenses are tax-free. One of the challenges for too many employees, though, is estimating in advance how much money to set aside. Unfortunately, if employees guess wrong or cannot afford to save in advance, they find themselves without enough money in their accounts to pay for expenses. This means they end up having to pay for healthcare expenses with after-tax dollars.
E-Duction has a solution, Real-Time HSA Funding. This exciting new approach allows employees to pay for any healthcare expense on a pre-tax basis even if they do not have the funds already set aside in their HSA.
How it works:
Pre-tax funds are deducted from an employee’s paycheck as needed (based upon their actual expenditures)
The funds are automatically deposited into their HSA accounts
Then the funds are used to repay their actual healthcare expenses over time
This means employees no longer need to worry about how much money they have in their HSA since they can pay for all their healthcare expenses on a pre-tax basis, regardless of the funds currently deposited in their HSA.
By making it easier for ALL consumers, even those who typically do not save, to maximize the benefit of an HSA, E-Duction can help you encourage the adoption of HSAs and their accompanying lower-cost healthcare plans.
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