Health Savings Account

A Discovery Benefits Health Savings Account is the easiest way to control the rising cost of health care for your employees. The account works in conjunction with a high-deductible health plan to lower your premium costs for employee health coverage.

Employee contributions can be made through a cafeteria plan on a pre-tax basis or on an after-tax basis outside the cafeteria plan. If an employer elects to contribute to an employee’s HSA, employer contributions are excluded from taxable income, and employment taxes do not apply, saving you matching Social Security and Medicare taxes.

Your employees can make tax-free withdrawals from the account for IRS qualified medical expenses not covered by the high-deductible health plan. Account holders may also make tax-free withdrawals from the HSA for insurance premiums for Medicare (except Medicare Supplement Policies), long-term care coverage, health coverage while receiving unemployment benefits or health care continuation coverage required by federal law (known as COBRA coverage).

Unlike the flexible spending accounts, contributions are employee-owned so once contributions are made, they are theirs to keep. Employees may withdraw the funds or accumulate funds from year-to-year. The interest or earnings on the assets in the HSA accumulate tax-free. There is no "use-it-or-lose it" rule.

Put our experience to work for you. Discovery’s extensive experience in the FSA and HRA market place translates to exceptional customer service and administration in the HSA and Consumer Directed Health Care arena.

Our custodian is HealthcareBank. HealthcareBank’s investment management team provides investment expertise for Discovery’s HSA product. HealthcareBank carefully selects the mutual funds to provide account holders with a variety of options to meet a variety of investment needs. Chose from asset allocation funds, where the mix of investments is done for you, or select style specific funds and create your own investment mix.

Start saving today. Contact a Discovery Benefits Representative to get started.