Three types of financial arrangements can be coupled with a High-Deductible Health Plan (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 plan members 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 helps employees pay for the health care services they need with tax-advantaged funds. Be sure to weigh the benefits of each before choosing one.
Here are a few things to keep in mind about each:
Contact your broker or BlueCross account executive to learn more about HSAs, HRAs and FSAs.