Savings for Employers and Employees
Employers and Associations can reduce the amount they spend and slow the rising cost of health benefit plans. In some areas premiums for a High Deductible Health Plan (HDHP) are 30–60% less than a traditional HMO. Trends on an HMO are currently at 11–15% versus 5.4% for a HDHP. Unlike traditional health reimbursement accounts (HRAs), where only employers set aside funds for health care, employees may also contribute to their individual HSA. With HSAs, funding can come from employers, employees or both. The employer sponsored HSA account acts as a "medical retirement fund” for employees to be used to pay for medical as well as long term care services.

Improve Health Care Decisions
The HSA option puts more control and responsibility in the hands of employees. Since the funds in the account are theirs to keep, they make better choices about how to spend health care dollars. This is the first step in abating the escalating increases in health coverage costs. Employers benefit as well since cost-effective utilization translates into lower medical trend and lower medical insurance premium. The financial incentive comes into play once the employees have funds in their HSA and roll them over year after year.

Taking Care of Your Employees
Fremont Bank, in partnership with Sterling HSA, is a high touch service provider, together, we go out of our way to take care of your employees - answering questions thoroughly and professionally, paying claims quickly and alerting account holders to possible problems with IRS related requirements.

Reduce Paperwork, Save Time & Money
There is no employer accounting liability with HSAs and no employer-reimbursement process, unlike the HRA. Since HSAs are not considered ERISA plans, no plan document is required. This reduces employer paperwork to document plans and activity, saving time and money.

Reduce Premiums
Employers enjoy the advantages of reduced health insurance premiums immediately upon offering HSAs. In some areas, the savings can be as much as 30%–60%. Over time, cost-effective utilization will translate to reduced medical trend and future additional savings.

Reduce Taxes*
Employee payroll contributions to HSAs can reduce worker's compensation base as well as social security tax (FICA), FUTA, etc. based on gross payroll reductions.

Individual Benefits of HSAs

Savings and Investments
Unlike unused Flexible Spending Accounts and health benefit premiums, HSA dollars roll over from year to year accumulating interest until you use them.

Portability
If you leave your current employer, you can take your HSA with you.

Tax Savings*
HSA contributions not subject to withholding for income tax or employment taxes. Pre-taxed funds may be used for a variety of medical services that may not be covered by traditional health plans.

* Fremont Bank does not offer tax advise. Consult your tax advisor for information and rules specific for your to situation.

To get further information about Fremont Bank's HSA please contact us at:

Email: hsa@fremontbank.com
Call: (800) 554-6145