Are HSAs the new treatment?

HSAs are increasing in popularity due to a feature, in which dollars are allocated to employees who can roll the accounts over every year and take them with them when they leave. “I have a host of clients that use HRAs, and a host of clients that use HSAs,” Bradley said. “Some companies prefer HRAs because they are not as cumbersome to set up, and they retain the funds, rather than returning them to employees.” However “others favor the HSA for the effect it has on employees. “It encourages them to become better consumers of health care, since they’re spending their own money,” Bradley said. For instance, “If the money is coming out of their own pocket, consumers might ask doctors if they really need all three tests, or if they really need 100 pills instead of 50,” said Lou Basso, president of The Alcott Group, a Farmingdale-based professional employer organization and provider of human resources services.

If you have questions concerning your personal health care crunch please contact Micheal Murray at michael@1stplacemployer.com, www.1stplacEmployer.com