Indeed, brokers should be prepared to answer a threshold question: "How does the consumer-directed health plan compare with our existing plan?" 

Comparing HSA-qualifying plans and PPOs                  

Of course, every employee's situation will depend on his or her particular circumstances. Nevertheless, brokers can draw some general comparisons between health plans.

Suppose Susan's employer is offering two health plans that she must choose from: a high-deductible health plan paired with an HSA, and a traditional preferred provider option (PPO) plan.

Susan may save on her monthly plan premiums with the HSA-qualifying plan, perhaps even hundreds of dollars a year. According to a recent study, HSA-qualfiying plan members save almost $300 a year in premiums compared to those enrolled in PPOs.[2]

Of course, Susan should be reminded that in some years she may save more in her HSA than in others, depending on her family's medical bills. Susan can save money in the HSA, income tax-free, to pay or reimburse qualified medical expenses, such as expenses she has before meeting her deductible or the costs of coinsurance.

It's important to emphasize that the HSA is Susan's to keep, so she can use it today or save for expenses she will have in the future, even into retirement.

Susan enjoys another advantage with the HSA-qualifying plan that the PPO doesn't offer — triple tax savings when she opens an HSA. Her deposits into the account are exempt from federal income tax and most state income taxes. Any interest earned through interest or on investments is not taxed. And any money from the account that she spends on qualified medical expenses is income tax-free.

Successful adoption of an HSA program requires giving employees enough time to absorb the information and talk about the HSA-qualifying plan with their colleagues, families and friends. With autumn here, education about the features and benefits of the HSA over traditional health plans should be well under way.