The proliferation of HSAs

More than half of of the employers surveyed stated that presenting excessive-deductible plans as an alternative or absolutely replacing their insurance with a high-deductible plan was one among their simplest price-control measures.

beneath a high-deductible plan, employees have get entry to to a tax-advantaged health savings account (HSA) that they can use to pay for qualified health-care fees.

For excessive-deductible plans, the internal revenue service set a minimal deductible of $1,300 for character plans and $2,600 for circle of relatives coverage in 2016. maximum out-of-pocket expenses are $6,550 for people and $thirteen,a hundred for households this year.

You and your employer can make a contribution up to $three,350 for your HSA in 2016 if you have individual coverage, or $6,750 for own family plans. if you're at least 55, you could kick in a capture-up contribution of $1,000. 

You do no longer want to use up all the finances to your HSA via the cease of the yr.

HSAs have a triple tax advantage: Your contributions are tax-deductible, your account grows freed from taxes and your withdrawals are tax-free as long as the money covers certified scientific costs.

possibilities are you have already got a high-deductible plan at paintings. eighty-four percentage of the large employers polled count on to offer them subsequent year. more than one-1/3 of them will them will make these plans the simplest desire for coverage.

often, employers kick off a chief academic initiative after they introduce workers to the high-deductible plans, said Marcotte. Many employers seed HSAs with contributions. The median company contribution to an HSA is $six hundred for man or woman coverage and $1,one hundred for family plans, consistent with the survey.