Smart Benefits: How to Leverage Amazon’s Announcement to Boost HSA Use

Smart Benefits: How to Leverage Amazon’s Announcement to Boost HSA Use

Health Savings Account (HSA) funds can be used to pay for a wide range of IRS-qualified medical expenses beyond just prescription drugs. Participants can also use their accounts for other items like certain over-the-counter medications like allergy treatments, first aid supplies, monitoring equipment, and contact lens solution – all of which are available on Amazon.

In March, Amazon announced it would start accepting HSA dollars. Participants can simply add their HSA card as a payment method and shop for eligible items. With HSA use made even easier through the online shopping giant, now is a good time for employers to remind employees about the benefits of HSAs to maximize their value:

• Triple-Tax Benefit: For employees, contributions are tax deductible (or pretax if made through payroll deduction), savings grow tax free, and withdrawals on qualified expenses are also not taxed.
• Long-Term Savings: An HSA can be part of a longer-term investment strategy because the funds roll over from year to year.
• Eligible Expenses: Participants can withdraw HSA funds tax-free to pay for eligible medical expenses. And the list of what the money can be used for, listed in IRS Publication 502, is extensive.
• Portability: The plans are owned by the individual so they move with employees if they change jobs or leave the workforce.

 

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

Not only do HSAs benefit employees, but employers win as well since their contributions are tax deductible and, if employees contribute pre-tax through payroll, the company saves on payroll taxes. Plus, the plans encourage participants to make better healthcare spending decisions.

Rob Calise is the Managing Director, Employee Benefits of The Hilb Group of New England, where he helps clients control the costs of employee benefits by focusing on consumer-driven strategies and on how to best utilize the tax savings tools the government provides. Rob serves as Chairman of the Board of United Benefit Advisors, and is a board member of the Blue Cross & Blue Shield of RI Broker Advisory Board, United HealthCare of New England Broker Advisory Board and Rhode Island Business Healthcare Advisors Council. He is also a member of the National Association of Health Underwriters (NAHU), American Health Insurance Association (AHIA) and the Employers Council on Flexible Compensation (ECFC), as well as various human resource associations. Rob is a graduate of Bryant University with a BS in Finance