Employees can use their HSA for their international medical tourism expenses

Health savings accounts (HSAs) are a competitive advantage for company benefits packages, especially as more individuals seek international medical care. 

Employers can benefit from offering HSA accounts to employees to support medical costs, particularly those associated with international medical tourism. 

Making international medical tourism more affordable

An HSA is dedicated to medical expenses and is typically a triple-tax-advantage account, meaning contributions are tax-deductible, investments grow tax-free, and withdrawals for qualified medical expenses are not taxed. Eligible medical expenses include costs associated with diagnosis, cures and treatments, and preventive care, including equipment and devices for specific procedures. 

A common advantage that individuals seek from international medical tourism is receiving medical care at lower costs or with fewer restrictions. With employees already seeking cost-effective treatments, employers can further support their medical needs. Employees can use HSAs to cover medical expenses and receive the care they need without the additional stress of incurring debt. 

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Gaining a competitive edge with HSAs

Benefit leaders should consider adding HSAs to their healthcare offerings, highlighting the specific advantages of international medical expenses. This can help companies stand out in a competitive market, especially appealing to employees who want more control over their healthcare spending and savings. Consider the following potential benefits of HSAs. 

Employee deductibles 
Specific requirements set limitations on HSA deductibles, with 2021 data indicating a minimum annual $1,400 for self-only coverage and $2,800 for family coverage. The out-of-pocket expense and annual deductible maximums are $7,000 for individuals and $14,000 for families. 

Employer tax benefits
In addition to employee benefits, your company also gains significant tax advantages. Specifically, employers experience lower payroll taxes and FICA savings as the employer contributions to HSA accounts are not taxed. 

Appeal to modern and global workforces  
Employees who may be remote, work overseas or travel frequently can use HSA funds outside of the United States, allowing more flexibility for employees working from anywhere. In an increasingly modern and globalized workforce, HSA benefits are a competitive advantage. 

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Supporting employees on their medical journeys
When implementing an HSA, effective communication is crucial to ensuring employees utilize the benefit efficiently. Highlight the benefit in job descriptions to stand out in a competitive market, and ensure that new hires have access to clear and jargon-free information year-round, should they elect to create an HSA account. 

Consider these frequently asked questions that employees may have to help you feel equipped to implement an HSA benefit. 

1. Who is eligible for an HSA account? 
According to the IRS, individuals must be taxpayers covered by a high-deductible health plan, not by another health insurance plan or enrolled in Medicare. The employer, employee or both may contribute to an HSA account, and employer contributions are reported on the W-2 form. 

2. What are international medical tourism expenses? 
International medical tourism expenses may include surgeries, hospital fees, lodging or even travel costs. It is important to consider international restrictions and destination-specific medical information. 

3. How can you use your HSA in another country? 
Some HSA providers offer a debit or credit card that individuals can use to pay for medical expenses. Depending on the country, you can pay for eligible and qualifying treatments, procedures or medicines with the card. Otherwise, you can keep receipts and documentation to receive reimbursement. 

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Both employers and employees can benefit from HSA accounts. With the rise of international medical tourism in an increasingly globalized workforce, using an HSA for international medical expenses is a competitive way to save money and promote wellness.