Employers who want to assist with health care costs without sponsoring a group health insurance plan should consider a Business Health Savings Account (HSA).

A Business HSA combines individual health insurance purchased by employees with voluntary pre-tax contributions made to their accounts by employers—at a level chosen by the employer. Employees may choose their own individually-purchased health insurance plans and still realize the tax advantage of a Health Savings Account. Group high-deductible health plans are also available in lieu of individually-purchased plans.