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In According to a recent Kaiser Family Foundation study, a nonprofit that examines health issues, the adoption of Health Savings Accounts (HSAs) grew from 8% in 2007 to 13% in 2008. The percentage of employees nationwide using consumer-directed plans grew from 5% to 8% during the same period. Clearly, companies of all sizes are beginning to realize the benefits of HSAs.

HSAs are pretty much what their name implies: medical savings accounts. These accounts are matched with health plans featuring higher deductibles and lower premiums than traditional medical plans (High Deductible Health Plans, or HDHPs). They allow workers or employers to contribute money pre-tax into an account for medical expenses without being subject to federal income tax at the time of the deposit. Their chief advantages for employers are that HSAs allow you to offer medical and health benefits at a lower cost and that their use and maintenance is the responsibility of the employee.

It makes sense that these plans are catching on. Consider this: In 2007, the National Coalition on Health Care reported that employers with fewer than 24 workers saw premiums rise 7% on average. According to a report by the Kaiser Family Foundation, as of 2005, health care added $2 an hour, on average, to the cost of labor in a small firm. But the true proof is, as always, in the numbers. For example, a recent national survey by benefits consulting firm Mercer found that health care costs per employee for Preferred Provider Organizations rose by 6.3%, to $7,815 in 2008, while employees in HSA-linked plans cost significantly less at $6,207, up 4% from 2007.

With all their associated benefits, HSAs are not for every employee or employer. For example:

The IRS recently issued new guidelines on the maximum contribution levels for HSAs and out-of-pocket spending limits for HDHPs. For 2009:

To learn more about HSAs and HDHPs, check out the U.S. Department of the Treasury’s Health Savings Accounts (HSAs), which contains a variety of links outlining the functions of both plans.