One of the main concerns employees have with High Deductible Health Plans and Health Savings Accounts are “What if something happens today and I can’t cover the deductible?” Well, one company has figured out a way. Interest fee cash advances on their Health Savings Account. This is genius.
The company in 2006 devised a way to help employees pay unexpected medical bills by advancing cash interest-free from future paychecks. The money would otherwise have been deducted from their paychecks during the course of the year and deposited into individual health savings accounts. The service helped calm employees’ fears of not being able to pay for the high deductible, which is $2,500 for individuals and $5,000 for families in one of the plans the company offers.
“The No. 1 concern we heard from our associates was, ‘I don’t have $2,500 January 1st if I’m hit by a bus,’ ” said Andy Greenberg, principal of HR programs. “They were worried by that. This takes the worry out of having an unpredictable health care event.”
This is the type of company I’d like to work for.
The money is advanced automatically when an employee pays for a health care bill with a Visa-branded HSA debit card. If the account is empty, money is drawn from an Edward Jones account. The debt is paid back through automatic payroll deductions that would otherwise have deposited a portion of a person’s paycheck into his or her health savings account.
