HSAs May Be the New 401(k)s

hsaWith the ability to roll the balance over from one year to the next, an HSA can be a great replacement for a 401(k), especially if an employer does not offer a company match. When you consider that a family can contribute up to $6,250 in 2012 and contributions to health savings accounts go in on a tax-free basis, an HSA has the potential to serve as more than just a great way to pay for medical expenses. Since earnings on these accounts are not taxed and the money that comes out is not taxed, an HSA has the potential to serve as a rainy day fund, if not a retirement nest egg. Continue reading

Employers Still Look to Consumer Directed Plans

To combat cost increases that are expected to top 7% this year, many employers are looking at consumer directed health plans for savings. More than half of employers surveyed recently by the National Business Group on Health are increasing the percentage of plan costs paid by employees while 4 out of 10 have increased their in-network deductibles. When it comes to large employers, 75% are offering High Deductible Health Plans (HDHPs) with Health Savings Accounts (HSAs) this year, compared to just over 60% in 2011. Continue reading