The Hidden Secret of HSAs

Last time, we discussed four common mistakes employees and employers make with 401(k) plans, and how easy it can be to optimize and fix these with the right partner by your side. This month, we’re diving into the world of HSAs and why employers shouldn’t skip out on them.

The Hidden Secret of HSAs: Why You Shouldn’t Overlook This Powerful Savings Tool

Health Savings Accounts (HSAs) are one of the most underutilized tools in the employee benefits world—despite offering some of the most generous tax advantages available. Whether you’re a small business owner looking for affordable, attractive benefits options or an individual trying to make your health coverage dollars stretch further, HSAs are worth a serious look.

At Altura Benefits, we’ve seen HSAs become a game-changer for many of our clients—offering flexibility, savings, and long-term financial advantages. In this article, we’ll walk you through the essentials of HSAs, who qualifies, why businesses should consider them, and how to make the most of one.

What Is an HSA and Who Qualifies?

At their core, HSAs are savings accounts that allow you to set aside money on a pre-tax basis to pay for qualified medical expenses. But they’re more than just a place to store money for a doctor’s visit—they’re a versatile financial tool.

To open and contribute to an HSA, you need to be enrolled in a Qualified High-Deductible Health Plan (QHDHP), which the IRS defines annually. For 2025, the minimum deductible for a QHDHP is $1,650 for individuals and $3,300 for families, with maximum out-of-pocket limits of $8,300 and $16,600, respectively (IRS.gov).

You’re eligible to contribute if:

• You’re enrolled in a qualifying QHDHP.
• You aren’t covered by another non-QHDHP health plan.
• You aren’t enrolled in Medicare.
• You’re not claimed as a dependent on someone else’s tax return.

Once opened, an HSA belongs to you—not your employer—and the funds roll over year to year, never expiring.

Why HSAs Are a Hidden Gem: The Triple Tax Advantage

The standout feature of an HSA is what’s called the “triple tax advantage.” This means:

1. Contributions are tax-deductible (or pre-tax if made through payroll).
2. Growth is tax-free – any interest or investment earnings aren’t taxed.
3. Withdrawals for qualified medical expenses are also tax-free.

This tax treatment makes HSAs more powerful than even 401(k)s or Roth IRAs in some scenarios. According to Devenir, a leading HSA investment provider, HSA assets reached $116 billion across over 35 million accounts in 2023, with investment assets growing by 38% year-over-year (Devenir Research).

For savvy individuals and families, this is a unique opportunity to save for healthcare while also building a nest egg.

The Business Case: Why HSAs Make Sense for Employers

For business owners, every benefit decision must balance cost, value, and simplicity. HSAs check all three boxes.

Cost Savings:

Pairing an HSA with a high-deductible health plan often results in lower premiums for both the business and its employees. Employers can choose to contribute to employee HSAs—either as a set amount or matching contributions—which are tax-deductible for the business.

Flexibility and Control:

Unlike traditional health plans or FSAs, there’s no “use-it-or-lose-it” rule. Employees own the funds in their HSA even if they leave the company, which reduces administrative headaches for HR.

Attract and Retain Talent:

Offering a health plan with an HSA option demonstrates that you value financial wellness. In competitive hiring markets, having flexible and modern benefit options like HSAs can set your company apart.

Tips for Getting the Most Out of an HSA

An HSA is only as powerful as the strategy behind it. Here are a few ways individuals and employers alike can maximize its value:

• The 2025 IRS contribution limits are $4,300 for individuals and $8,550 for families, with an extra $1,000 catch-up contribution allowed for those age 55 and older. Regular contributions—especially early in the year—help maximize potential tax savings and investment growth.
• Many HSA providers allow you to invest funds once your balance reaches a certain threshold. This can turn your HSA into a second retirement account, especially if you’re able to pay current medical expenses out-of-pocket and let the account grow.
• HSAs don’t require reimbursement immediately after the medical expense. You can reimburse yourself years later, as long as the expense was incurred after the HSA was established. This gives you the option to grow your account and access funds when you really need them.
• If you’re a business owner, make sure employees understand how HSAs work and how they differ from FSAs. Education goes a long way in increasing adoption and satisfaction.

How Altura Benefits Can Help

Whether you’re a business owner looking to enhance your benefits package or an individual wanting to better manage healthcare costs, HSAs can offer exceptional value. But like any financial tool, they work best when they’re used strategically.

At Altura Benefits, we help small businesses and individuals navigate the evolving world of healthcare and employee benefits. We can help you:

• Evaluate whether an HSA-compatible plan is right for your team.
• Educate employees on how to make the most of their HSAs.
• Compare plan designs and optimize contributions for tax efficiency.

We believe in simplifying benefits so you can focus on what matters most—growing your business and protecting your future.

Ready to explore the benefits of HSAs for your team or yourself?

Let’s start a conversation. Contact us today to see how Altura Benefits can help you make smarter decisions about health and wealth.