As health care costs continue to rise, employers are always looking at ways to soften the blow of medical expenses. One of the ways to do this is through consumer driven health plans.
Some plans allow employees to use these accounts to pay for medical expenses that are not covered by insurance, while employers can use others to provide employees with a fixed dollar amount with which they can purchase health care services. There are 4 major types of consumer driven health plans:
– Medical Savings Account (MSA)
– Health Savings Account (HSA)
– Flexible Spending Account (FSA)
– Health Reimbursement Arrangement (HRA)
Deciding which plan is best for your company and your employees requires you to evaluate the advantages and disadvantages of the MSA’s, HSA’s, FSA’s and HRA’s individually as no one plan is right for every employer.
To review the plans, pro’s and con’s – view the chart of tax-advantaged accounts below or I’d be happy to discuss the options.