Great-West Healthcare in Denver and Mellon Financial Corp.'s human resources and investor solutions business have announced the formation of an alliance to offer a health savings account for employer-sponsored health plans.
HSAs are tax-favored employee savings accounts used in conjunction with qualified high-deductible health plans, the companies said on Thursday. Funds from the accounts may be used without tax penalty to pay for qualified medical expenses such as deductibles and prescription drugs, as well as long-term-care insurance and COBRA premiums. Employees and employers may make combined annual tax-free contributions less than or equal to the deductibles, up to certain limits.
The Great-West/Mellon HSA will make it is easy for employees to enroll since the medical plan and tax-advantaged account work together. Participants can check HSA account balances and do transactions on-line. They can also contact a dedicated HSA customer service unit for assistance.
