health insurance

If you need a prescription for healthy savings, just memorize these three letters: HSA.

A Health Savings Account, or HSA, works in conjunction with a high-deductible health insurance plan. The money contributed to this account then becomes available to cover medical or other health-related expenses. Balances in this account roll over from year to year, so the employee can sock away quite a nest egg for medical contingencies.

One size does not fit all. It’s true for shoes, and it’s true for employee health plans. The employee with a large family and a history of medical issues will have different health insurance needs than the twenty-something free spirit in perfect health. Try to cover them all with a single, all-encompassing health plan and you not only end up with disgruntled employees — you also end up paying for unused coverage.