Are you an insurance broker working with small and large employers? Is a key part of your job to position HSAs for your clients? According to Devenir, an investment advisor in the HSA industry, there were $98 billion in HSA assets as of Dec. 31, 2021. That’s over $26 billion in tax savings for consumers! Articulate the advantages of offering HSAs to employers and help the employer in-turn communicate the benefits to prospective account holders. If your client offers other health accounts, show them why HSAs are better.
To recap, a HSA or Health Savings Account is a medical savings account, not an insurance plan. Individuals can put money away in their HSA by setting aside that money or by having it automatically withdrawn from your salary by their employer. HSAs can be combined with a High Deductible Health Plan or HDHP to help pay for certain medical expenses with money that is free from federal taxes. Among other benefits, HSAs don’t expire and allow you to save money for future healthcare costs.
As an insurance agent seeking a Life and Health license or completing CE requirements, you must be familiar with policies that provide HDHPs and HSAs. Classified as medical expense insurance, these topics appear in the Insurance Examination Content Outlines in most States. In addition to refreshing yourself on the terms and concepts as part of your Continuing Education, be sure to stay current on changes such as those to IRS rules on contribution limits or the health expenses that are allowed. Sign up for the insurance CE course Introduction to Health Savings Accounts. Obtain a deep dive into the basics of HSAs including the types of contributions, coverage, distribution rules – and earn a CE along the way!
Employers who sponsor a group-health plan are required to report their contributions to an HSA on the employee’s Form W-2. Employees are also required to file a Form 8889. As a trusted partner to your clients, become familiar with these and other tax reporting requirements addressed in the Introduction to Health Savings Accounts course. Hear recommendations from a leading Third-Party Administrator on how you can help employers overcome common HSA headaches.
