Health Savings Accounts: A Way to Help Pay for Health Care Cost

INTRODUCTION Health insurance is the largest line item in our budget, with the exception of payroll. It is more than rent, computer equipment, utilities, errors and omissions insurance, liability insurance, or supplies. And, bear in mind, health care benefits are in addition to the costs of retirement contributions, sick leave, vacation, and other benefits. Our annual benefits package exceeds $10,000 for each employee. With twenty-five full-time employees, a quarter of a million dollars is committed to benefits before one cent is paid in salaries and overhead. For a small professional services firm, this is a breath taking amount. This report provides an overview of the costs and benefits of Health Savings Accounts.