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Employers are constantly seeking ways to save money while continuing to provide health care benefits for their employees. One option that has gained popularity in recent years is offering employees an option to enroll in a High-Deductible Health Plan (HDHP) that is qualified under the tax code to be combined with a tax-advantaged saving/spending account (a Health Savings Account). MedCost is an experienced administrator of high-deductible employer benefit plans. We can help clients design a plan with that allows employees to have more choice over the way their health plan dollars are spent.


Health Savings Accounts

A Health Savings Account (HSA) is designed to work in conjunction with an HDHP to help keep premiums low, and offer a vehicle to help the consumer save and pay for medical expenses until the deductible is satisfied. HSA contributions, interest, investment earnings and qualified distributions are tax-exempt for the employee. The employer experiences some tax benefit as well, as the matching payroll tax contributions to Social Security and Medicare are reduced.