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i have a company and use HSA for the employees.
basically you can give them a yearly allowance, and they can use it on a variety of different things as they please. the qualifying expenses are much broader and easier to get approved since we the company are paying for all of it anyway.
so if you give them $2k per year, and they use the entire 2k, then the company pays 2k + 10% as the administrative fee.
some employees probably won't come near their limit, so some years it will be cheaper, while with any of the traditional insurers, your yearly expenses do not go down no matter how little your employees use their benefits, it can only go up.
The benefit of using it for myself is that you can expense it, it's pre-tax spending. the downside is that we have to pay 10% on top.
we used to have blue cross but after the first year they wanted 15% more, then the second renewal they wanted 45% more so we said goodbye. HSA is not nearly as good, but at least we can guarantee to our employees that their benefits will not get taken away next year or the year after.
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