The Newest Solution to Wage Parity
Give Employees the Freedom of Choice
Home health care agencies in NYC can utilize fringe money to meet wage parity requirements while offering employees a high deductible MEC Plan plus a robust HSA. With tax-free contributions, growth, withdrawals for medical expenses and the ability to withdraw cash when needed makes an HSA a strategic benefit that enhances both current and long-term financial security.
Watch This Video on How It Works
Why Offer a Health Savings Account in lieu of Cash?
A Health Savings Account, or HSA, is a unique, tax-advantaged account that your employees can use to pay for current or future healthcare expenses.
HSA accountholders can use their funds now on qualified healthcare expenses or save for their future through self-directed investment options. Plus, funds in an HSA roll over from year to year and earns interest tax-free.
As an employer, you save on state and federal taxes by reducing the overall taxable income of each employee equally massive savings year after year.
Tax Free Growth
ACH Withdraws of Funds
Reduced FICA Responsibility for Employers
Optimize Your Benefits Today!
Empower your employees and optimize your benefits package with our innovative high deductible MEC plan paired with an HSA. Don’t miss out on the triple tax advantages and the opportunity to secure a healthier financial future for your team.
Triple Tax Advantage
Health saving accounts (HSAs) offer a three-pronged tax benefit:
Tax Free Contributions
Contributions made through payroll deductions are added tax free which lowers the overall taxable income for employees and saves employers on Federal tax obligations.
Investment Growth
HSAs offer the unique advantage of tax-free investment growth, allowing your contributions to accumulate interest or investment returns without being taxed.
Withdraws
Enjoy tax-free withdrawals for qualified medical expenses. With an HSA, you can use your savings to pay for eligible healthcare costs without paying any taxes on the withdrawals
Satisfy Employees While Saving Money At The Same Time
Employer Savings
While employees are happily enjoying the tax advantages, employers will see lower payroll taxes and substantial FICA savings.
Employers don’t pay FICA taxes on employees’ HSA pre-tax payroll contributions resulting in a 7.65% savings. And for every pre-tax dollar contributed to an HSA, that tax savings grows.
Simply put, the more employees who have HSAs and make HSA contributions, the lower your payroll taxes and the greater your income and FICA tax savings.
Build for Employee Growth
High Deductible MEC Plans
Our high deductible minimal essential coverage (MEC) plan offers essential health coverage while keeping costs manageable. Designed to meet ACA requirements, this plan ensures your employees have access to necessary preventive services, such as routine check-ups and screenings, without breaking the bank.
When paired with an HSA, it provides a powerful combination of coverage and savings, allowing employees to take control of their healthcare expenses and build a safety net for future medical needs.
HSA vs HRA
See why we are offering an exciting new option for employers with a wage parity mandate that other TPA's aren't
Health Savings Account
(HSA)
Earns Interest & Can Be Invested
Employee Owned
Stays With The Employee
Builds a Retirement Plan
Health Reimbursement Arrangement
(HRA)
Gains Zero Interest
Employer Owned
Non-Portable
Money Can Only Be Used For Eligible Medical Expenses
Frequently Asked Questions
What is an HSA and how does it work?
An HSA (Health Savings Account) is a tax-advantaged savings account available to individuals with a high-deductible health plan (HDHP). Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.
Can employees withdraw money from their HSA for non-medical expenses?
Yes, but if they're under 65, non-qualified withdrawals are subject to a 20% penalty and income tax. After age 65, the penalty is waived, but non-medical withdrawals are still taxable as income.
What is the difference between MEC HDHP and MV HDHP?
Option 1: MEC (Minimum Essential Coverage) HDHP costs $75 per month. This plan generally covers basic preventive services but may have limited benefits for major medical expenses.
Option 2: MV (Minimum Value) HDHP costs $400 per month. This plan provides broader coverage, meeting the Affordable Care Act's minimum value requirements, and typically offers better protection against large medical bills.
Do these protect me from ACA Penalties?
Yes, the High Deductible MEC plan protects you from ACA penalty A while the High Deductible MV plan protects you from both A & B.
Who covers the cost of the MEC and MV Plans?
The cost of the plans can be covered using wage parity funds any additional amount leftover will be placed onto an HSA. By doing it this way, employers and employees are free from tax burdens.
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