It’s open enrolment season for millions of American workers’ healthcare programmes. Wells Fargo & Company has been helping a growing number of employers to lower their annual healthcare expenses with the Wells Fargo-administered Health Savings Account (HSA) program, while also providing their employees with long-term benefits.

Employers are saving an average of $1,500 per worker in HSA-qualified health plan premiums(1). In 2012 alone, the Wells Fargo‑administered HSA programme saved U.S. businesses an additional $25 million in payroll taxes. This year, the total savings will top $40 million. Employees, meanwhile, save up to $25 or more(2) on each $100 in HSA contributions and can build a safety net for retirement medical expenses.

Created as part of the Medicare Prescription Drug and Modernization Act of 2003, the HSA is a pretax healthcare account that offers multiple benefits to employers and their workers, from smaller health plan premiums to bigger retirement savings. As of third quarter 2013, Wells Fargo totaled over $1 billion in HSA assets and more than 400,000 individual accountholders.

Employee benefits
For employees, HSAs offer triple-tax savings, including tax-free contributions, tax-free earnings from interest and investments, and tax-exempt payments for qualified medical expenses, among other benefits:

• unused HSA funds do not expire at year-end. They carry forward year after year, helping to build tax-free savings that can pay for medical expenses in retirement
• a valuable savings tool for employees who might not have a 401(k) or have reached the maximum in retirement contributions 
• convenient online and mobile access alongside other Wells Fargo bank accounts.

Employer use of HSAs
Greatbatch Inc., a global designer and manufacturer of products for implantable medical devices, uses HSAs. Since 2006, the company has partnered with Wells Fargo on an HSA program that has helped rein in annual healthcare cost increases. “HSAs are an integral part of our overall healthcare strategy,” says Gina Campbell, director of benefits for Greatbatch, which offers one healthcare option, a high deductible health plan with an HSA. “As a result, our associates have become engaged healthcare consumers over the past five years. A strong HSA program administered by Wells Fargo along with our medical plan and our wellness initiative has truly benefited Greatbatch and our associates.”

(1)Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2013. Premium savings is average of single and family savings.

(2)Tax savings are on income taxes. Tax references are at the federal level. State taxes vary. This news release does not provide tax or legal advice. Consult your tax advisor for more information.