Financial Arrangements - HSA/HRA/FSA

Three types of financial arrangements can be coupled with a HDHP - a Health Savings Account (HSA), Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA).

Pre-tax and tax-deductible dollars contributed to these arrangements can be used for IRS-approved qualified medical expenses such as copays, deductibles, coinsurance and prescriptions. HSAs even allow you to pay for vision care, long-term care insurance premiums, COBRA premiums and more.

Each type of financial arrangement is unique in its design, administration and use. Adding a financial arrangement eases the cost burden to your employees.  Be sure to weigh the benefits of each before choosing one.

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 tax-free interest.
• HRA
  • Employers own these arrangements, and only can contribute to it.
  • You set the opening balance and what 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.

Contact  your broker, BlueCross account executive, or call us at 1-800-565-9140 to learn more about HSAs, HRAs and FSAs.