Undoubtedly, businesses benefit from offering HSA programs to their employees. While there are negative consequences in terms of employee distrust, employers still have many positive reasons to avoid tradition health insurance plans in favor of alternative health care plans such as HSAs (Heath Savings Accounts). Following is a brief list of the pros and cons of business HSA. Sadly, many companies will not consider the cons, as they are not interested in anything other than their bottom line when providing benefits to employees. As a result, one must conclude that it is a good idea for one's business to offer an HSA program.
Indeed, the major problem with employer-sponsored HSAs is negative employee perception. Because health care costs are being shifted from the employer to the staff members, many are skeptical of the program, feeling that the benefit is trivial and somehow inferior to companies offering group health insurance. Further, since companies are not required to deposit contributions in consistent amounts or on regular schedules, employees wonder whether they will receive their contributions. Furthermore, many staff members are in low income jobs which means that they will not receive the same benefit from tax sheltered programs. They may not even be able to afford to make any deposits of their own.
Lastly, many employees who already have employer-sponsored HSAs claim that the insurance companies still dictate their medical needs since the company supplying the HDHP is in control and not the employee.