COMP NEWS – Insurance holding company Transamerica is offering new incentives for small businesses that select the company for its health savings provider.

Transamerica this week announced an initiative that encourages employees to save more now for retirement and medical costs by providing special incentives until the end of the year.

For small businesses that select Baltimore-based Transamerica as their retirement plan and health savings provider before December 31, Transamerica said it will waive administration and participant fees on their health savings accounts and flexible spending accounts for two full quarters. In addition, Transamerica will offer its signature Plan Administration Service Support (PASS) communication services at no cost to the employer during the retirement plan’s conversion period.

With so many businesses vying to retain talent, benefits are more important to employees than ever.

Health savings accounts and flexible savings accounts offer significant tax savings for the employee to pay for current eligible medical expenses, or to invest and save for health expenses in retirement. With Transamerica, employees have the convenience of tracking their retirement plan, health savings account, and flexible spending account in one location.

One survey found projected that couples should have as much as $360,000 in savings to cover unexpected health expenses – a number the vast majority of Americans do not have. That’s one reason why health insurance is such an important benefit for employers to provide.

In January 2022, the Employee Benefit Research Institute (EBRI) projected that some couples could need as much as $360,000 in savings for health expenses. Savings are needed to pay for Medicare Parts B and D premiums, the Part B deductible, premiums for Medigap Plan G, and out-of-pocket spending for outpatient prescription drugs.

To read about the year-end incentives that Transamerica is offering, click here.

For more Comp News, see our recent posts.