Health Savings Account

HSAs - a smart solution to rising costs.

Health Savings Accounts (HSAs) can offer a win-win situation for you and your employees. An HSA is an account that can be opened by your employees to make tax-advantaged contributions to cover health care costs. The funds may be withdrawn by your employees, tax-free, for qualified medical expenses. You and your employees may make contributions into an HSA as long as your employees are enrolled in a qualified High Deductible Health Plan (HDHP).

Lower your insurance costs

High deductible insurance plans typically have lower premiums than HMO or PPO type plans. If you've been hesitant to switch to a high deductible plan because you're unsure how your employees will perceive the change, you may be pleasantly surprised. Many employers are finding that offering HSAs along with a high deductible plan, and funding the HSAs on behalf of their employees, even up to the full contribution limit, is more cost effective than offering an HMO or PPO-type plan.

Add value for your employees

You may be able to actually lower your employees' out-of-pocket expenses by funding their deductible through an HSA, while paying less for their coverage. If some of your employees are not able to afford the coverage you offer currently, an HSA you fund for them combined with a lower-premium high deductible plan may enable them to afford health coverage for the first time.

High deductible plans can provide coverage that measures well compared with other types of coverage, once you factor in the "out of network" charges, co-pays and items not covered under their old plans that are qualified medical expenses under an HSA. Not only that, but the value of an HSA follows your employees even after they leave the workplace. The money in an HSA belongs to the employee, stays in the account from year to year, and can be used to save for retirement.

Benefits to your employees

Tax-free earnings on your money

  • Earn competitive interest rates. Interest income grows tax free.
  • No minimum balance to earn interest
  • FDIC insured account

Flexible payment options

  • Pay with a Midland HSA Debit MasterCard, an HSA check or through your Online Banking

Access to your account

  • Online access to account information
  • Monthly statements mailed to you
  • Year-end printed statement with details of deposits and transactions for IRS reporting

Low cost

  • No monthly fee with $1,500 average balance, otherwise only $2.00 per month
  • No account set-up fee
  • No fees to your account for employer contributions

Employee eligibility

In order to be eligible for an HSA, an employee must:

  • Be enrolled in an HDHP
  • Not be covered by another health insurance plan, except what is permitted
  • Not be covered by Medicare
  • Not be a dependent on someone else's tax return

For more information, call 1-855-MY-MIDLAND to speak with us about HSAs.

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Still have questions?

When you have a question, we're just a phone call away. Our Customer Care Specialists are available to answer your account questions quickly by calling us at 1-855-MY-MIDLAND.

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