The IAA One Minute Blog

According to a recent study, in 2015 more corporate workers will likely be offered a high deductible health plan (HDHP) –sometimes known as a consumer directed plan. Furthermore, at a rising number of companies it will be the only option on the health benefits plan menu.

How HDHPs can Help Your Business

A HDHP is an excellent way for business owners to reduce costs for their company, while still providing the same high level of medical coverage and benefits that employees expect and desire. In 2015, nearly a third of large employers will only offer high deductible health plans, up from 22% in 2014 and 10% in 2010, according to a study by the National Business Group on Health.

With HDHPs, consumers pay for all of their medical services (at the insurer’s negotiated rate) until they meet their deductible. After that, consumers typically pay coinsurance, which is a percentage of each service (say 10% to 35%) until they reach their out-of-pocket maximum.

HDHPs are often effectively combined with a health savings account (HSA) to help defray the cost of the deductible. HSAs are not a stand-alone coverage option, but rather a supplemental means of planning for medical expenses not covered by the company’s insurance plan. This is done by providing tax free funds to cover unexpected or uncovered medical costs.  As long as the plan deductible exceeds $1,300 for a single person or $2,600 for families (in 2015) then employers and workers can deposit money into a HSA.  The advantages of using a HSA are:

• Payroll tax savings for the employer
• Tax free money for the employee
• Employees become more conscientious healthcare consumers
• Allows employees to develop a long term healthcare strategy

As employers try to nudge employees toward healthier behaviors, they are increasingly tying their contributions to employee health expense accounts (like a HSA) to motivate healthier behavior. As employees are putting their own money into a HSA, employers hope that they will be more open to comparison shopping for medical services.

Health insurance premium increases have made a HDHP with a combined HSA the only solution for employers that find it too difficult to afford traditional health insurance premiums.

How IAA can Help

If you are interested in setting up a HDHP with a combined HSA, Insurance Administrator of America is here to help! IAA is there for employers and their employees every step of the way.  Some advantages that IAA provides are:

• Plan design options
• Employee communication
• Account implementation
• Claim verification
• Detailed explanation of benefits
• Real time reporting
• Dedicated HSA team to manage your account
• Online access to complete account information 24/7
• Compliance with federal regulations

IAA’s HDHPs with a combined HSA can help employees fund those unexpected medical costs that come along, and help employers provide affordable healthcare benefits to their employees.

If you are interested in learning more about IAA’s HDHPs with a combined HSA please reach out! Remember, with IAA one call does it all.

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