The Health Savings Account
The ultimate savings tool an employer can provide for it’s employees.
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP), either with an employer or individually through the marketplace.
HSAs: The Portable Benefits That Grow
The pairing of HDHPs* and HSAs is a major components of today’s consumer driven healthcare model. With lower premiums than traditional plans, and the flexibility to spend healthcare dollars best suited for the consumer needs, this combo of plans is a great way for employees to save money and plan for their healthcare needs, now and in retirement.
Ownership
HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either HDHPs or standard health plans. The HDHP can be either an individually owned policy or an employer-sponsored benefit.
Contributions
HSA contributions may come from either an employer or an employee, and can be up to the annual maximum amount that is set by the IRS. Those 55 and older are allowed to contribute an extra $1,000.
Tax Advantages
HSA contributions are not subject to federal income tax. Tax advantages can be realized through pre-taxed payroll, or declared on annual taxes. If made through employer and expensed within an FSA plan, the contributions are free of withholding, FICA, and Medicare tax.
Unlike employee deferrals into the FSA or HRA accounts, HSA funds roll over and accumulate year to year if not spent. HSAs are also portable and able to earn interest into retirement. If funds are used for medical expenses, they are tax-free, however, they can be used for other purposes as long as ordinary taxes are paid on withdrawals.
*An HDHP is a health insurance plan that meets specific minimums regarding deductibles, specific maximums regarding out-of-pocket cost to the policyholder, and contains no co-payment features before the deductible is met.
CO-ORDINATING FSAs AND HRAs IN AN HSA ENVIRONMENT
Ensuring Compliance
Unlike HRAs and FSAs, there are no formal federal plan installation requirements imposed upon employers that install high deductible health plans and/or make contributions into employee health savings accounts. However, care must be taken to ensure that HRAs and FSAs co-ordinate with an HSA environment; otherwise, employers run the risk of endorsing a plan environment that will not pass the scrutiny of the Internal Revenue Service.
The rules with respect to integrating HSAs with HRAs and/or FSAs are expressed by the IRS in a bulletin that was issued in 2008. Click here for a copy of that bulletin; it is currently an invaluable resource in this arena.
HSA 2024 Limits
Contribution Limits (Employer/Employee Combined
HDHP Deductible Minimums
HDHP Out-of-Pocket Maximums
SELF ONLY
$4,150
$1,600
$8,050
FAMILY
$8,300
$3,200
$16,100
Contribution Limits (Employer/Employee Combined
SELF ONLY
$4,150
FAMILY
$8,300
HDHP Deductible Minimums
SELF ONLY
$1,600
FAMILY
$3,200
HDHP Out-of-Pocket Maximums
SELF ONLY
$8,050
FAMILY
$16,100
TESTIMONIALS
What Our Clients Say
Exceeds Expectations
Exceptional service! We have used TPA Systems for years and they continue exceeding our expectations for customer service, timeliness, and creative solutions for our employee benefits. Our law firm wanted to cut costs and Stacey showed us HRA, HSA and LFSA solutions which reduce benefits costs for the law firm and maximize tax savings for the firm and our employees.
Makes Life Easier
The way an employer knows whether its HRA/FSA administrator is doing its job is that you never hear any complaints from your employees. TPA Systems shines in this regard. TPA Systems, you have been a pleasure to work with over the past few years. You make my life easier!
Works Flawlessly
For the better part of 15 years, Third Party Administrators Systems (TPA Systems) has provided Bay City Gas with professional services related to administering both our group health insurance plan and our Health Reimbursement Account (HRA). The HRA plan has worked flawlessly, both on the users’ side and on the administrative side. We highly recommend TPA Systems for any entity in need of these services.
Knows What They Are Doing
Stacey Merritt and his staff are the best to work with. Very efficient! The reimbursements are always within 7 days of receiving the request. Stacey is very quick to respond to any questions I might have. They always give you the option to do your own reports or they will do them. I personally let them do my state reports. Stacey and his team know what they are doing!!!! I will continue to use this company for as long as our city offers this program to its employees.
Stood the Test of Time
Our law firm has had many carriers and vendors providing and administering employee benefits over the years, but the one company we do business with that has stood the test of time is TPA Systems Inc. Since we first installed our cafeteria plan many years ago, TPAS has provided excellent, prompt service to both our staff at the administration level and our employees at the consumer level. We highly recommend TPAS.
Prefers Us To Other TPAs
Our firm has used TPA Systems, Inc. for our H.R.A./H.S.A. benefit administration for fifteen years and has yet to receive a negative comment from any of our clients. When preparing a presentation, TPA Systems’ attention to detail is impeccable and professionalism is unquestioned. The latter is displayed during employee enrollment meetings which involve audience participation. For these reasons I do not entertain solicitations from other third-party administrators.
Highly Recommends Us
I have been working with Stacey Merritt and TPA Systems, Inc. over the past 9 years offering HRA, HSA, POP Plan, and Flexible Spending Accounts to my employee benefit customers in Houston, Texas. My customers and I have been extremely pleased with their highly professional and prompt service and would highly recommend Stacey and TPA Systems, Inc. to both benefits professionals and employers.
We Are A Beacon of Light
As an insurance broker, I am constantly tasked with finding a solution to the ever-increasing cost of health insurance and higher deductibles for employees. Stacey Merritt of TPA Systems has been a beacon of light for me, and his service, knowledge and expertise has helped my employer groups keep a consistent plan while containing cost. TPA Systems delivers HRA, HSA, FSA, and COBRA administration with ease, affordability, and excellent turnaround time. Of all the arrows in my quiver, TPA Systems may be one of the sharpest.
A Great Experience
I have known Stacey Merritt for over 35 years and have been doing business with his firm for 14+. His knowledge of the third party administration business is top-notch. My experience with TPA Systems Inc. has been nothing short of great! I would highly urge you to consider TPA Systems for any and all things pertaining to HRA, HSA, FSA, and plan documents!
Appreciates Accuracy, Quick Response and Help Getting Business
Again, this renewal season it was consistent customer feedback on the service from and ease of doing business with TPA Systems. As the broker I appreciate the accuracy and quick response to questions. Thank you for helping us get new sales and keep business.
Excels in Designing and Implementing Cost Saving Plans
I have worked with Stacey Merritt at TPA Systems for many years. Stacey has always offered the highest level of customer care, but where he truly excels is in designing and implementing plans that stretch my clients’ benefit budget while keeping employees satisfied. Many of my clients have utilized TPA Systems plans for years. I’ve simply never had a client ask for another administrator.
A True Asset
Stacey has built a very successful TPA because of his passion to help brokers, advisors, and employer groups. I haven’t met a more knowledgeable person regarding HSA, HRA, and FSA compliance and execution. Stacey is a true asset to my clients, and I’m always looking for more opportunities to work with him.
