The Value of FSAs and HSAs to Small Businesses

Shared by Christine Erickson - 5/12/2016

I own a small business in Minnesota with 15 employees. For the past several years I have offered a high deductible health plan, along with HSAs and FSAs. Since the implementation of health care reform, our premiums have increased more than 100%! In an effort to maintain an affordable group health plan, I have continued to offer plans that provide coverage for catastrophic expenses (HDHP), but not first dollar coverage. To assist employees with paying certain out of pocket expenses, I offer my employees the opportunity to convert some of their hard earned payroll dollars into FSAs and HSAs. Over the years, these accounts have become VERY valuable to my employees! It is imperative that Congress act to exclude these contributions from the Cadillac Tax so that as a small business owner, I can continue to make these accounts available as part of our benefits program!

“My Money, My Health” is supported by the Employers Council on Flexible Compensation (ECFC), the leading nonprofit organization promoting choice in benefit solutions. For more information, please visit