The Problem
Mary has single coverage through her employer’s benefit plan. Mary’s employer pays 75% of her health care premiums, while she pays for the remainder. Even though her employer pays for the majority of her premiums, health care is still expensive and Mary struggles to pay for the remaining premiums and out of pocket expenses. To make matters worse, her employer just received word of a significant increase in premiums coming the following year.
The Transition to a Health Savings Account (HSA)
In response to the premium increases, Mary’s employer makes changes in their schedule of benefits to compensate for the changes in costs.
After the new changes, Mary can do one of the following:
- Mary may move to a high-deductible health plan where her employer will pay 100% of her premiums. In addition, her employer is willing to set up and contribute to a Health Savings Account (HSA) which will help Mary pay for her future medical expences.
- Mary must pay a significant amount more to retain her current low-deductible plan.
Due to the lower cost and available funds for her healthcare expenses, Mary chooses to move to the high-deductible health plan with the HSA.
The Result
Mary’s employer saves money on the cost of the original plan, and renewals return to a competitive number. Mary experiences financial relief because the employer is covering 100% of her premium. Plus, she saves money in a portable, interest-bearing account that she can use to cover her healthcare expenses, as needed (No Use It or Lose It). This helps Mary becomes a more cost conscious healthcare consumer and build healthcare savings for her future.
Your Next Steps
Don’t let premium increases continue to constrain yours and your employees’ budgets. Request a Quote to learn how BMA’s Health Savings Accounts can provide financial relief while building savings for future healthcare expenses.