What is a Health Savings Account?

A Health Savings Account, or HSA, is a tax-exempt account with a financial institution in which funds accumulate to pay for medical expenses. They were created in response to the rising cost of health care with the intent to give the consumer back the control of their health care costs as part of a movement towards consumer-driven health-care.

 

Why Would a Company Consider a HSA?

HSA’S give financial incentives for employers of all sizes to provide health insurance benefits to their employees and allow them to save money on a pre-taxed basis for their medical expenses. HSA’S allows companies to enjoy tax reductions while having affordable health insurance premiums.

 

How Does a HSA Work?

Before a health savings account can be opened, a qualified High Deductible Health Plan (HDHP) must be in place to cover the individual or family. An HDHP provides health coverage for an individual or family with an affordable premium. The guidelines for an HDHP are determined by the Internal Revenue Service each year. To determine if your plan qualifies, please contact your health plan representative.            

                          

HSA Contribution Limits

                                                  2019               2018              CHANGE
Individual Coverage               $3,500           $3,450           +$50
Family Coverage                     $7,000           $6,900           +$100

HSA catch-up contributions (age 55+) $1,000 per year

Strategic Banking Partner

Strategic Banking Partner for the Savings Account

HRC Total Solutions handles all the administration and provides a local regional approach to the claims adjudication, employer interface, customer service, and employee training/education. However, the investment vehicle for the    savings account needs to be offered through a qualified custodian/trustee. For this reason, HRC Total Solutions through our current strategic business partner Lighthouse 1, has aligned our administration with Healthcare Bank.

As a national leader in the Health Savings Account market, Healthcare Bank located in Fargo, North Dakota, is dedicated to providing resources and expertise to help consumers gain control of their health care decisions.

Custodial Expertise

Deposits and investments for consumer-driven healthcare accounts are held and managed by Healthcare Bank, a division of State Bank & Trust (member FDIC). State Bank & Trust is one of the Midwest’s largest privately-held financial institutions, with combined asset management of over $4 billion dollars.

Your partner in the CDH market, not your competition

Engaged in the custodial management of CDH funds and investments since the inception of HSAs, Healthcare Bank has the knowledge and experience of the consumer-driven healthcare industry to support benefit plan administrators as you look to market and brand your own CDH solutions.

Custodial Transparency

Healthcare Bank’s benefit banking solutions are unique from national competitors, as they serve to leverage the strengths of the administrator while Healthcare Bank remains a silent partner, supporting your HSA custodial needs.

Cash Account Balance Interest Rates

Cash Account Balance                     Interest Rate                     Annual Percentage Yield (APY)
$0.01 - $1,999.99                                 0.05%                               0.00% - 0.05%
$2,000 - $4,999.99                               0.10%                               0.05% - 0.08%
$5,000 - $9,999.99                               0.25%                               0.08% - 0.17%
$10,000 - $24,999.00                           0.35%                               0.17% - 0.28%
$25,000 and up                                     0.50%                               0.28% - 0.50%

(effective Nov 1, 2015)

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