Save money when you combine a Tax Advantaged HSA and HRA with a high deductible, low premium individual or group health plan.
The following benefit options (tax advantaged HSA and HRA) save employers and employees money through reduced taxes. This is because they allow for healthcare and premiums to be paid for with pre-tax dollars. Thus, it can equate to a significant tax savings.
Here’s how these plans work.
A Health Savings Account (HSA) combines a high deductible/lower premium health insurance plan (PPO) with a savings account. In the case of an employer sponsored benefit, both employer and employee can contribute, tax-free to the savings account, which can help fund the deductible and other qualified medical expenses. The the HSA pays for services equal to the deductible, the insurance will start paying claims thereafter.
Many carriers offering individual health plans also offer HSA benefits with the same tax advantages, including tax deductible contributions to the savings account. Dollars in your health savings account earn interest tax-deferred and roll over from year to year until you decide to use them. Withdrawals from your health savings account are tax-free as long as you use them for qualified medical expenses, as defined by the IRS. Click here or refer to the resources to the right of this page for more information on qualified medical expenses.
A Health Reimbursement Account (HRA). This coverage combines high deductible/low premium health insurance together with a tax favored savings account. Employers contribute to the savings account, which can be used to fund co-pays and other qualified expenses prior to the deductible being met.
what expenses are reimbursed
through the HSA/HRA programs.
Choice Strategies is a leading administrator of HSAs, HRAs, and FSAs. Visit their site by CLICKING HERE.