10 Reasons to Move in a New Direction

Health Savings Accounts Offer 10 Great Reasons to Move in a New Blog featured image 1
Direction

  1. Savings: The premiums for the qualified high deductible health plans are lower than those of “traditional” health plans.
  2. Flexibility: You choose how, when, and if the monies in you Health Savings Account are used.
  3. Tax Savings: Monies contributed to your Health Savings Account, either by the Employer or the employee, avoid payroll taxes, including Federal, State, and FICA.
  4. Preservation: Unlike traditional “Cafeteria” plans, unused dollars in your account are not lost, but are kept in the account for future use.
  5. Simplicity: There is no cumbersome administration, monitoring of accounts, or sending in receipts for verification of HSA use. Medical costs can be paid for by a debit card or check.
  6. Relationships: HSAs help to re-establish the doctor-patient relationship to determine the proper care rather than always needing to “look to the insurance company” for guidance.
  7. Incentive: HSAs reward you for healthy lifestyles and making wise, cost-effective choices in your medical treatment.
  8. Portable: Monies in your HSA are never lost or forfeited when you leave your place of employment or when you retire.
  9. Retirement: At Medicare retirement age, monies in your HSA can still be used tax- free for medical treatment and/or can be taken out to supplement retirement subject only to regular income taxes.
  10. Control: Most importantly, it gives you a real chance to control health costs long term as your account builds and as insurance renewals are lower.

 

What are HSAs and HRAs?

Do You Own Half a Medical Policy?

A group health insurance policy can do a good job of covering the medical bills when an employee has a serious or chronic injury or illness. However, after an employee has exhausted their sick leave, how does the employee cover their loss of pay from being too sick or too hurt to work because of that serious injury or illness?

Doctors_400

For many small to mid-sized companies, disability insurance is one of the most overlooked benefits that can be offered, yet it can be one of the most significant benefits for your employee’s ability to survive financially. A recent study revealed that a group of 4 or more employees has an 89%+ chance of having one of their employees out for a disability of three months or more and for an average of 5 years. Since many employees live ‘paycheck to paycheck,’ it is no wonder that, according to the Council for Disability Awareness Long Term Disability Claims Review; 2005, 48% of all mortgage foreclosures are due to disability. Do your employees have the financial reserves to be out of work for even six months?

Most employers are not aware of how inexpensive a group disability benefit can be for themselves and their employees. Depending upon the plan design and benefits, premiums range from one to three percent of payroll, yet can provide income to a disabled employee up to age 65 if needed. Benefits can be provided to all employees or just to owners and managers, depending upon the needs of the company. Different benefit levels can be provided to each class as well.

Group Disability Insurance is a significant benefit that is well worth the time to get more information. After all, if someone is too sick or too hurt to come to work, at what point do you want to fire one of your best employees?

A group health insurance policy can do a good job of covering the medical bills when an employee has a serious or chronic injury or illness. However, after an employee has exhausted their sick leave, how does the employee cover their loss of pay from being too sick or too hurt to work because of that serious injury or illness?

For many small to mid-sized companies, disability insurance is one of the most overlooked benefits that can be offered, yet it can be one of the most significant benefits for your employee’s ability to survive financially. A recent study revealed that a group of 4 or more employees has an 89%+ chance of having one of their employees out for a disability of three months or more and for an average of 5 years. Since many employees live ‘paycheck to paycheck,’ it is no wonder that, according to the Council for Disability Awareness Long Term Disability Claims Review; 2005, 48% of all mortgage foreclosures are due to disability. Do your employees have the financial reserves to be out of work for even six months?

Most employers are not aware of how inexpensive a group disability benefit can be for themselves and their employees. Depending upon the plan design and benefits, premiums range from one to three percent of payroll, yet can provide income to a disabled employee up to age 65 if needed. Benefits can be provided to all employees or just to owners and managers, depending upon the needs of the company. Different benefit levels can be provided to each class as well.

Group Disability Insurance is a significant benefit that is well worth the time to get more information. After all, if someone is too sick or too hurt to come to work, at what point do you want to fire one of your best employees?