employers in Texas face double digit rate increases again this year on their group
health insurance plans, many businesses are looking for ways to contain the
spiraling costs in providing these benefits.
Health Savings Accounts were
created by the Medicare bill signed by President Bush on December 8, 2003 and
are designed to help individuals save for future qualified medical and retiree
health expenses on a tax free basis.
Health Savings Accounts are now available for employers to purchase for
These plans represent the future of health care and offer employers an
affordable option in today's challenging healthcare environment.
purchases a High-Deductible, Health Savings
Group Health Plan from one of several insurance carriers. Some of the
insurance companies offering these plans include:
- Assurant Health
- Blue Cross Blue Shield of Texas
- United Health Care
The Employee funds, in a separate account at an Health
Savings Accounts bank,
an amount of up to 100% of their deductible, not to exceed the following limits
- $2,900 Individual
- $5,800 Family
For calendar year 2008, a "high deductible health plan" is one that
has an annual deductible of at least $1,100 for self-only coverage ($2,200
for family coverage) and annual out-of-pocket expenses up to $5,600 for
self-only coverage ($11,200 for family coverage).
A Debit Card is then issued to the employee to use as payment for
out-of-pocket medical expenses.
All contributions into the savings fund are tax deductible and grow tax
Monthly premiums are inherently low due to the high-deductible associated
with the Health Savings Accounts program.
A careful review of the Health Savings Accounts plans will assist Texas employers to select
the company and plan that best suits their needs.