Medical savings accounts in MN are available only to people with high-deductible health insurance plans (HDHPs). You can save your company a good chunk of money by offering these plans to your employees: HDHPs have lower premiums than do typical insurance plans.

If your company has a Section 125 plan, contributions to the accounts can be done pre-tax by your benefit administrator: This makes contributions simple for your employees and efficient for you. A Minnesota health insurance savings account (HSA) may sound like a good idea for every company, but there are a few things to think about before proceeding:

1. Realize that your employees own the entire balance of their health insurance savings accounts in MN. They're entitled to all of it if their employment with your company is terminated for any reason.

2. Note the contribution limits. As an employer, you can contribute as much or as little as you want to Minnesota health savings accounts, so long as the maximum is not exceeded between the contributions you and your employee make.

3. Find a good benefit administrator. Health savings accounts in Minnesota are not hard to set up, but you need to make sure they're maintained properly.

Action Steps
The best contacts and resources to help you get it done

Find local banks that offer Minnesota health insurance savings accounts

It's relatively simple to find banks that offer individual HSAs, but you're looking for an employer-based plan. You may need to call all the banks in your area to find out what they offer.

I recommend: Talk to a representative from Anchor Bank to set up an HSA account for your company's employees. Locate a local branch of the Voyager Bank, which offers a low-fee HSA plan for businesses.

Consider insurance carriers that offer Minnesota health saving accounts

Many high deductible plans are now bundled with HSAs to give subscribers better control over their health care. Explore the possibilities to see if this is the best route to take.

I recommend: Consider the Definity plan by Medica, which is licensed to do business in Minnesota. Check out the small business HDHP/HSA plans at Blue Cross Blue Shield of Minnesota.

Get the resources you need to get Minnesota health insurance savings accounts started

Because HSAs are a bit more complicated than regular insurance plans, you'll want to download and print out your application so you can sit down and fill it out correctly. Fill out the forms and send them to the carrier you chose.

I recommend: Choose from four different plans at MN Health Insurance Network. Download a group form from Bank of America.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The U.S. Department of the Treasury must approve all health insurance savings accounts in Minnesota to ensure that they're qualified as tax-deductible. The HDHP must be approved as well.
• •  If you're having trouble finding someone you trust to open your HSA, look for bankers who are approved as custodians or trustees of Individual Retirement Accounts (IRAs). These folks are automatically approved by the Treasury to service HSAs.