Tufts to Offer HSA's to Smaller Businesses

September 13, 2004 (PLANSPONSOR.com) - Tufts Health Plan, in partnership with three Massachusetts intermediaries, has unveiled a health savings account (HSA) for businesses with fewer then 10 employees.

Along with the Small Business Service Bureau, Inc., the Massachusetts Business Administration, and the Northeast Business Trust, Tufts is getting into the small-business market for HSA’s, which were authorized by 2003’s Medicare Prescription Drug Improvement and Modernization Act.

HSA’s are tax-free accounts that can be used to save money for medical costs. They must be used in conjunction with a high-deductible insurance plan.

“The HSA option is a natural fit with the strategy of the small businesses we work with – it is an innovative opportunity to offer health care coverage,” said Shannon Linde, vice president, Massachusetts Business Association, in a press release. “Health care coverage is critical to all employers and by building this partnership with Tufts Health Plan, together we will make a difference in the ability of small employers to offer health care coverage.”