Medical Coverage and Tax Breaks For Business and Employees
We offer a tax-advantaged Health Savings Account (HSA) — paired with our high-deductible PPO plan. Our HSA products have Pediatric Vision services embedded as well as the option of to embed Pediatric Dental services. The combination helps employers and employees save on health care costs.
Those savings are realized in traditionally lower monthly premiums, fixed out-of-pocket costs on deductibles, tax savings, and the opportunity for employees to decide when and how to use medical services.
This type of savings plan is designed specifically to pay qualified medical expenses.
The HSA can be funded by a combination of employer and/or employee contributions – both contribution types are tax deductible.
Funding options are flexible too. Employers can, for example, let employees elect to deposit money into an HSA via payroll deduction. The HSA funds would then be available to pay for immediate or future health care expenses – things like copays and coinsurance, or medical expenses that aren't covered by the plan, like acupuncture or Lasik eye surgery. The list of qualified medical expenses that can be paid with an HSA is determined by the IRS and can be found in IRS Publication 502.
Employees can use HSA funds to pay qualified medical expenses. But they can also let their HSA dollars accumulate, like a "rainy day" fund, and if they do the HSA earns interest, tax free. So pay or save — the choice is theirs. And when they need funds to pay medical expenses, the withdrawals are also tax free. Our HSA is an effective way to bring your employees into the process of managing their health care choices and, ultimately, your business' bottom line.
- Lower premiums compared to many fully-insured medical plans.
- Employer contributions are exempt from federal and FICA taxes
- Employee contributions in a given year are a 100 percent write-off against income taxes
- Deductible is reached through combined medical and prescription costs, not separate totals
No “use-it-or-lose-it” — even if employees move, retire or change jobs — unused funds roll over year to year.
In order for our HSA products to be compliant with PPACA regulations, Pediatric Vision and Pediatric Dental coverage is embedded.
Our programs include Healthy Rewards which is a program designed with the goal of encouraging your employees to make better health care decisions and become savvy about health care spending.
Capital BlueCross offers the HSA in conjunction with its High Deductible Health Plan (HDHP) coverage.
View an HSA specific plan brochure.
HSA combined with an IRS-qualified HDHP Pre-tax contributions: lower your employee's taxable income Tax-free growth: employees earn interest and build savings on a tax-free basis Retirement savings vehicle: funds can be withdrawn for any purpose without penalty after reaching 65 (taxes may apply) Portability: the money stays with the employee Investment Flexibility: Access to a wide range of mutual funds available to help the account grow Roll Over: unused funds carry over into the next year Funds can be used towards qualified medical expenses
75 Years and Still Counting
Members in our 21-county service area have counted on us since 1938 for quality health insurance. Central Pennsylvania and the Lehigh Valley count on Capital BlueCross for excellence in customer service and our commitment to provide accessible and innovative health care products.
Benefits for You
We'll work hand-in-hand with you to exceed your health care goals and objectives. From traditional health plans to cost-sharing options to leverage employee participation, we've got you covered with medical, dental, vision, and prescription drug plans. And we provide the wellness tools you need to educate and encourage your employees to live healthier lives with healthier decision-making, while keeping your bottom line in check.
Benefits for Your Employees
Our commitment carries over to your employees too. We know the importance they place on reliable health coverage and appropriate care — it's the reason we offer the variety of plans we do. So both you and your employees can be satisfied in benefits selection.