In attempting to provide health care benefits, small employers and self-employed individuals face several problems:
Due to the high cost of traditional health insurance coverage, it is difficult (if not impossible) for many small employers and self-employed individuals to provide themselves and their employees with adequate health insurance protection. Without this protection, however, the financial impact of a serious injury or illness can be devastating!
While managed care has produced cost savings, people enrolled in managed care plans generally find their choice of doctors restricted. There is also increasing concern about the interference of bureaucracies in the doctor-patient relationship.
Individuals who need little or no health care receive no financial reward under traditional or managed care plans, nor is there any financial incentive under these plans for individuals to exercise control over their health care expenditures.
Ask your employees to name their top financial concern and many of them will name paying for health care, both now and after retirement.
By combining tax-advantaged personal savings with a high-deductible health insurance plan, the Health Savings Account (HSA) may be the answer for small employers and self-employed individuals looking for a flexible, affordable health care solution, both now and into retirement.