There are many things to consider when putting together a CDHC benefits package.

First, look at high deductible health plan options:

With High Deductible Health Plans, consider that:

• The deductibles and coinsurance associated with these plans can be extensive.
• Your contributions will be important in helping cover these expenses.
• Teaching employees how to manage this type of plan will be key in making it work.
• With the right tools, employees will learn the value of the care they receive and utilize care more wisely in the future.
• High deductible health plans aren’t right for every group. Evaluate your employees' health care habits before choosing such a plan.

Secondly, strongly consider adding a financial arrangement:

Adding a financial arrangement makes the cost burden to your employees a little easier.

Here are a few things to keep in mind about each:

• HSA
  • You and/or your employees may contribute to the account.
  • Your employee owns these funds and can take them from job to job.
  • These funds roll over annually, and earn interest tax-free.
• HRA
  • Employers own these arrangements, and only you can contribute to it.
  • You set the opening balance and which expenses are reimbursable.
  • You maintain available assets to cover potential expenses.

• FSA
  • Employees contribute funds through pre-tax payroll deductions.
  • Any PPO plan can accompany this financial arrangement
  • Funds don't rollover and are not portable.

BlueCross BlueShield of Tennessee can help set up and administer an HRA or FSA, and help you partner with a bank or financial institution to set up and administer an HSA arrangement.