Business Banking/Health Savings

Business Banking/​Health Savings

High-Deductible Insurance Health Savings Account

Here’s a cost-effective solution to skyrocketing health insurance costs for you and your employees. Our Health Savings Account (HSA) supports a high-deductible health savings plan* that typically costs you less than HMOs or PPOs.

  • Work with experienced Peoples Bankers who understand HSAs
  • Convenient Peoples Bank debit card
  • Electronic e-Statements including images
  • In most circumstances, employees pay less in taxes as contributions are made with pre-tax dollars (similar to an IRA or 401k)
  • As an employer, you pay less in premiums and save tax dollars

ACCOUNT DETAILS:

  • This account supports a high-deductible health insurance plan and must be used in conjunction with a high-deductible health insurance plan.
  • The deductible and the contribution amount change annually and are tied to the inflation rate.
  • Like an IRA, Health Savings Account contributions can be made until April 15 of the following year.
  • HSAs can have only one owner but multiple beneficiaries.
  • Monthly service charge: $3
  • Other fees on disclosure: $25 set-up fee, $25 account closure, $20 excess contribution refund fee.
  • Interest earned is tied to the FHLB rate adjusted on the first day of each month.
  • If you have a co-pay, the insurance does not qualify as a high-deductible health plan.

Common Questions for Businesses:

WHAT IS THE TAX TREATMENT FOR EMPLOYEE CONTRIBUTIONS? WHAT IF I MAKE CONTRIBUTIONS AS AN EMPLOYER? DOES MY BUSINESS STRUCTURE AFFECT CONTRIBUTIONS? HOW CAN I MAKE HDHP MORE ACCEPTED BY MY EMPLOYERS?

 

*For further information please refer to IRS Publication 502 for information on Eligible HSA Expenses and IRS Publication 969 for General HSA Information, or consult your tax advisor.