Unlocking the Benefits of HSAs: Savings for Individuals and Businesses

With healthcare expenses on the rise, finding smarter ways to save for both planned and unexpected medical costs is more important than ever. That’s where a Health Savings Account (HSA) comes in—providing not just savings but powerful tax advantages.

Benefits For Individuals

Designed to be paired with qualified health plans, such as most High-Deductible Health Plans (HDHPs), HSAs allow for tax-deductible contributions, tax-free interest, and tax-free withdrawals when used on these eligible healthcare expenses. So, when you use your HSA for qualified medical expenses you can reduce your taxable income. However, the benefits of an HSA go beyond the primary tax benefits:

  • Qualified Medical Expenses: Your (HSA) can be used for a wide range of eligible medical costs, including doctor visits, prescription medications, dental and vision care, and more.
  • Portability: Your HSA is yours to own, meaning if you change jobs, insurance plans, or retire, the account stays with you as an avenue to cover your medical expenses.
  • Rollover: Unlike a Flexible Spending Account (FSA) which has a “use it or lose it” rule, the balance in your HSA rolls over from year to year, ensuring no funds expire.
  • Flexibility: An HSA allows for tax-free growth when making investments and earning interest in the account, allowing your savings to grow over time.
  • Retirement Savings: After age 65, the funds open up and can be used for non-medical expenses without a penalty, although those withdrawals will be subject to regular income tax.
Benefits For Businesses

For businesses, offering an HSA-eligible HDHP can help reduce monthly health insurance plan premiums, and contributions to HSAs (from either them or their employees) reduce payroll taxes. Employers can offer HSAs as part of a broader employee benefits package, helping workers save pre-tax dollars for healthcare costs and achieve greater financial wellness. There are multiple benefits to employers offering an HSA-eligible HDHP:
  • Tax Deductible: Contributions made by the business to employee HSAs are tax deductible as a business expense, which can decrease your business’ tax liability.
  • FICA Tax Savings: When employees contribute to their HSAs on a pre-tax basis, employers save on Federal Insurance Contributions Act (FICA) taxes since they aren’t subject to Social Security or Medicare taxes, resulting in payroll savings.
  • Competitive Benefits: For employees looking for more health insurance options, offering an HSA can make a company’s benefits package more attractive to health-conscious employees.
  • Employee Wellness: HSAs reduce the strain of medical expenses on employees, encouraging more consistent medical treatment, and improving their general well-being.

Health Savings Account (HSA), Powered by Lively

In order to better serve our customers and employees, Pioneer has partnered with Lively, a leading Health Savings Account (HSA) provider, to offer an innovative HSA solution for both individuals and employers. An HSA is a tax-exempt, personal savings account used to save and pay for eligible healthcare expenses.

Lively HSA includes features such as:

  • An intuitive online dashboard and mobile app so account holders can easily manage their healthcare funds and track savings.
  • Two investment options from Devenir and Schwab* for account holders to grow HSA funds for future healthcare needs.
  • Comprehensive education. Lively provides dynamic and timely educational content. Find it on the Lively Blog, Lively’s online Resource Center, or directly in your inbox.
  • Accessible, timely support - Lively’s Member Support team is available via email, phone, or secure chat.

In summary, HSAs offer a flexible, tax-advantaged way to save on healthcare costs—benefiting both individuals and businesses. Whether you're looking to manage personal medical expenses or offer your employees a powerful financial tool, an HSA can help. Ready to get started? Explore how Pioneer’s partnership with Lively can support your personal healthcare savings goals or benefit your business:

PERSONAL SAVINGS     EMPLOYER RESOURCES