The BASE® Health Savings Account (HSA) is a special type of bank account designed to help individuals save and pay for qualified medical expenses, while also allowing the opportunity to save for the future, and/or invest funds to build wealth. An HSA allows participants in a qualifying High Deductible Health Plan (HDHP) to save money on a pre-tax basis to pay for qualifying medical expenses now or in the future. HSAs also offer excellent tax benefits to help individuals make the most out of every health care dollar, making it a powerful tool for diversifying retirement portfolios.
The HSA is popular among individuals, small businesses, and large employers. The HSA allows employers an opportunity to provide a means for employees to pay for thousands of eligible items such as copays, over-the-counter medications, dental, vision, and more with tax-free dollars.
Benefit to Employer:No Size Restrictions.
Available to employers of any size.
Strong Benefits Package.
HSA builds a strong benefits package to attract and retain employees.
Employees’ contributions reduce payroll taxes and contributions to employees’ HSAs are tax deductible.
Savings on health insurance premiums, since HDHP coverage is more affordable.
Benefit to Employee:Investment.
Funds grow, with interest or through investment, tax-free.
Funds are contributed tax-free. Money grows and comes out income-tax free when used for qualified medical expenses.
There is no risk of losing money if not used in a certain time-frame. The account belongs to the individual whether they change employment or benefits.
Affordable Health Care.
Funds can be used to pay for medical expenses for themselves, as well as family members they claim on their taxes.
HSA Plan Eligibility
The HSA provides an option to businesses of any size with a High Deductible Health Plan (HDHP) looking for a low-cost alternative to help keep health insurance premiums under control. Guidelines for qualifying for the HSA include the following, but be sure to contact BASE® with any questions regarding eligibility.
The HSA allows employers to help employees pay for qualified out-of-pocket medical expenses and invest and save for the future.
- All contributions are 100% deductible as a business expense for the employer and non-taxable for the employee.
- The employees have additional money to help with the continuous rise in health care and money to save and invest for the future.
Looking to Transfer HSA From Another Vendor?
BASE® provides solutions for employees when moving HSA custodians and offers transfer options to support even the most complex organizations.
Frequently Asked Questions
Our program accommodates group or individual enrollment in the BASE® HSA. Once an account has been created, the employee will be given access to a secure, easy-to-use Consumer Portal where he or she can track account balances, view investment accounts and submit request for distributions.
Yes, with the BASE® HSA you can invest funds once the minimum cash balance threshold has been met. Funds can be invested in an interest-bearing account or our standard mutual fund lineup through our World-Class Partner - HealthcareBank. The HSA provides 5,000 mutual funds and investment options through our self-directed brokerage account to give employees more diversity when investing.
The BASE® HSA can reimburse for qualified medical expenses such as copays, over-the-counter medications, dental, vision, and more.
An employee may not be enrolled in BOTH an FSA and an HSA, but CAN be enrolled in a Limited Purpose FSA and the HSA that reimburses employees for their vision and dental expenses.