HSA Plans are a Good Solution for Small Businesses

October 24, 2016|

Piggy bank icons. Vector illustrations.By Mike Herrington, President, Herrington Financial Services

In attempting to provide health care benefits, small employers and self-employed individuals face several problems:

Cost

Due to the high cost of traditional health insurance coverage, it is difficult (if not impossible) for many small employers and self-employed individuals to provide themselves and their employees with adequate health insurance protection.

Without this protection, however, the financial impact of a serious injury or illness can be devastating!

Choice

While managed care has produced cost savings, people enrolled in managed care plans generally find their choice of doctors restricted. There is also increasing concern about the interference of bureaucracies in the doctor-patient relationship.

Control

Individuals who need little or no health care receive no financial reward under traditional or managed care plans, nor is there any financial incentive under these plans for individuals to exercise control over their health care expenditures.

Ask your employees to name their top financial concern and many of them will name paying for health care, both now and after retirement.

By combining tax-advantaged personal savings with a high-deductible health insurance plan, the Health Savings Account (HSA) may be the answer for small employers and self-employed individuals looking for a flexible, affordable health care solution, both now and into retirement.

Mike Herrington is President of Herrington Financial Services, Inc, a Registered Investment Advisor. He is a Certified Financial Planner licensee(CFP), a Chartered Financial Consultant (ChFC) and a Certified Estate Planner(CEP). He has been serving clients in the CSRA since 1984. Contact him at 706-868-8673 or mike@herringtonfinancialservices.com

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