Nashville Council Approves Health Savings Account

In order to help deal with continually rising healthcare costs for employees, the Nashville City Council approved a Health Savings Account at their meeting this week. The plan allows the city to contribute 720 dollars annually to each employee. Local insurance agent Lisa Chandler presented the program to council members and says the money will be placed into an account to help offset the two thousand dollar deductible employees will pay.

The funds can only be used for medical expenses. Should an employee withdraw funds for other purposes, that money will be taxed by the federal government.

Had the city continued with its previous healthcare benefits package, it would have been looking at a 32 percent rate increase per employee.