SAN MATEO, CA (Monday, December 09, 2013)
SAN MATEO, Calif.--(BUSINESS WIRE)--Dec. 9, 2013-- WageWorks, Inc. (NYSE: WAGE), a leader in administering Consumer-Directed Benefits, is commemorating a decade of the Health Savings Account (HSA). December 8, 2013 marks 10 years since HSAs began to play an integral role in empowering Americans to keep more of their hard-earned money and better control their healthcare expenses. These pre-tax accounts also bring significant cost savings for employers.
On December 8, 2003, President George W. Bush signed the Medicare Prescription Drug Improvement Modernization Act of 2003, which introduced the HSA. As an expansion and evolution of Medical Savings Accounts launched in the 1990’s, HSAs have since continued to gain popularity in the healthcare industry, as well as with consumers and employers alike.
HSA accounts allow employees and their families covered by qualifying High-Deductible Health Plans (HDHPs) to set aside pre-tax income for medical expenses, helping them save money and making healthcare more affordable. A census by America’s Health Insurance Plans (AHIP) released earlier this year showed that in January 2013, 15.5 million people were covered by HSA-Qualified High-Deductible Health Plans, compared to only one million covered in 2005, indicating a remarkable adoption curve.
“We always strive to make it easy for employees to save money on healthcare expenses using HSAs and other Consumer-Directed Benefits,” says WageWorks CEO, Joe Jackson. “This anniversary marks an important milestone in enabling employees and their families, as well as employers, large and small, to control rising healthcare costs by leveraging HSAs. We believe this is still only the beginning.”
Rising healthcare costs is a big driver for why employers and employees choose HSAs. For 2014, the contribution limits increase to $3,300 for individual coverage and $6,550 for family coverage. As an example, an individual with a tax rate of 30%, who is taking full advantage of the contribution limit, will save $990 a year; a family at the same tax rate will save $1,965. Individuals 55 years and up can contribute an additional $1,000 to their HSA, resulting in even greater savings.
HSAs are also gaining prominence as an effective retirement savings vehicle dedicated to preparing for healthcare expenses that occur in the later stages of life. These accounts are effectively augmenting other retirement tools, such as 401(k)s or pension plans, as well as complementing Flexible Spending Accounts and other pre-tax offerings.
WageWorks has been administering HSAs for more than eight years. To learn more about how WageWorks empowers employees to drive down healthcare expenses by using HSAs, visit www.wageworks.com.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for 58,000 employers and approximately 4.5 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.