Does a company automatically get an HSA with an HDHP?
No, it isn’t automatic. Employees with high-deductible health plans (HDHPs) may use a health savings account (HSA) to reduce their taxes on medical expenses, but employers are under no obligation to offer a health savings account. The US Treasury states that HSAs were developed specifically so employees covered under HDHPs could obtain tax-preferred treatment on […]
No, it isn’t automatic. Employees with high-deductible health plans (HDHPs) may use a health savings account (HSA) to reduce their taxes on medical expenses, but employers are under no obligation to offer a health savings account. The US Treasury states that HSAs were developed specifically so employees covered under HDHPs could obtain tax-preferred treatment on their eligible deductibles.
Consideration
The US Office of Personnel Management states that to be eligible for an HSA, you must enroll in an HDHP. Many employers may find that offering an HSA can make it easier for employees to transition from their previous health plan to an HDHP. Although employers don’t have to contribute to HSA plans, if they do it will be pre-tax and not treated as income.
Helpful Links:
HDHP rules – IRS.gov
