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    HEALTH SAVINGS ACCOUNT

    With a Health Savings Account (HSA) through KNBT, a division of National Penn Bank, you provide employees with a tax-advantaged way to save on and pay for medical expenses while controlling your business's healthcare costs and enjoying a number of tax benefits. When combined with a qualifying high-deductible health plan, a Health Savings Account will help your business offer a competitive and attractive benefits package.

    Employer Benefits of a National Penn HSA
    • When your business offers a HSA with your qualified high-deductible health plan, you help your employees gain more control over how their healthcare dollars are spent while reducing the cost of your health insurance premiums. This combination creates an attractive benefits package, which may help your business attract and retain valued employees.
    • Any unused HSA funds are rolled over from year to year. By offering a HSA, you are providing an incentive for your employees to use healthcare services wisely, which may save your business money and help to contain future insurance premiums.
    • Contributions your business may choose to make to employees' Health Savings Accounts are generally tax-deductible. We recommend that you consult your business tax advisor regarding your tax obligations.
    • If your business offers a qualifying cafeteria plan allowing employees to make pre-tax contributions, you may also be able to reduce your FICA liability.

    Reasons to offer a National Penn HSA
    • Lower Insurance Premiums: A High Deductible Health Plan (HDH), which is a requirement to open a HSA, has significantly lower premiums than traditional health insurance plans.
    • Employees become conscious healthcare consumers: When employees control their own healthcare expenses, they become more conscious of healthcare costs, and may look for ways to reduce their expenses. By doing so, there is an incentive for them to use preventative care and choose healthier lifestyles.
    • Tax Savings: Employer contributions made on behalf of employees are deducted on the federal business income tax return for the year in which they make the contributions regardless if the contributions are used.

    Employee Benefits of a National PennHSA
    • Lower Insurance Premiums
    • Tax Advantages: Personal contributions offer employees an "above-the-line" tax deduction and any interest earned on a HSA is tax deferred. In addition, withdrawals that are made to pay for qualified medical expenses are tax-free.
    • Balance Rolls Over: The money contributed to a HSA rolls over from year to year. Therefore, if all of the money in the HSA is not used in one year, the balance in the account rolls over to the next year.
    • Portability: The HSA is portable, which means regardless of changes to employment status or location, medical coverage, marital status or changes to residence, the unused HSA funds stay with the employee.
    • Employees are in control: We make it easy for employees to pay for their qualified medical expenses with our HSA Visa Check Card.

    We help provide answers to your employees' HSA questions through our HSA Frequently Asked Questions page.