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Should a Small Business Owner Choose an HSA-Eligible Health Plan?

Lively · April 17, 2018 · 3 min read


What is more important to a small business owner than keeping costs low and employees happy? Its hard to find both, especially when selecting a health plan. Lower costs, that still offers the benefits employees expect, are why a small business owner should choose an HSA-eligible health plan.

HSA Health Plan Cost

HSA-eligible health plans, like HDHPs, typically have lower monthly premiums (for both employers and employees). This means immediate savings and lower expected health expenses. But what about any unexpected health expenses and the out-of-pocket expenses that can accompany them?

HSA-eligible health plans do have higher deductibles than traditional health plans, like PPOs and HMOs. In fact, to be considered an eligible HSA health plan in 2018, plans must have minimum deductibles of $1,350 for individuals and $2,700 for families. What can you do to safeguard your employees against these potential costs?

HSA Health Plan and Employee Satisfaction

Without an HSA, employees will have no dedicated funds for these “just in case” out-of-pocket medical expenses. They are left without a financial safety net.

With an HSA, employees get to decide how to allocate HSA funds they (or you) choose to contribute. They can use those pre-tax dollars to offset the tax burden of qualified out-of-pocket expenses or invest those funds for the years to come. Finding opportunities to empower employers with health benefits will keep them happy and healthy (and with more money next year for health expenses than this year).

Is There A One Size Fits All Health Option?

There is truly no “one size fits all” health benefits plan, but this strategy might be as close as you can get. Coupling an HSA with an HDHP balances short-term health cost (premiums and out of pocket expenses), with the only long-term dedicated health savings option.

Your employees get to decide how they want to use any HSA money they save. Employees can use this tax-free money for qualified medical expenses today or they can choose to save it for years to come. Choice is hard to come by in the healthcare space. It’s nice to have options.

401k, Not Required?

We wouldn’t go that far, but like a 401k or IRA, employees can save pre-tax dollars. They can use those funds today for qualified out-of-pocket medical expenses or invest them for retirement. After the age of 65, an HSA can be used for anything, just like a 401k or IRA. On top of that, an HSA has no mandatory distributions. An HSA might just be the new stealth IRA.

Getting more out of the benefits you already offer is key for any small business owner. Finding low-cost solutions like an HSA that help create health savings, make that even easier.

If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.



Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

piggy bank on pink background


2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa


What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.



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