As the COVID-19 pandemic affects the global economy, employers are increasingly searching for innovative ways to help employees trim their health insurance costs. As employers make choices about health benefits options for 2021, they must navigate a rising tide of healthcare costs and offer options that support a weary employee base that can ill-afford benefit cuts.
Resourceful employers can achieve this objective with two simple strategies.
Offer an HSA-qualified health plan option
As healthcare costs increase, HSA-qualified health plans offer significant savings for both employees and their employers. In 2019, the average HSA-qualified health plan had a 27% lower employee-paid premium than the average HMO plan and a 9% lower annual employer-paid premium. Employees can save additional dollars by using their HSAs to pay for their medical expenses tax-free.
Also, while HSA-qualified health plans are often associated with high annual deductibles, traditional health plan deductibles are quickly closing the gap.