www.gbswa.com consumer driven health plans wsac employee health care benefits forum
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www.GBSwa.com
Consumer Driven Health Plans
WSAC Employee Health Care Benefits Forum
Consumer Driven Health Plans
• Number of employers offering some type of consumer driven health plan has increased dramatically• 36% of large employers offered and HRA or HSA in 2012*
• Three main tax-advantaged accounts offered are:• Flexible Spending Account (FSA)• Health Reimbursement Account (HRA)• Health Savings Account (HSA)
*2012 Mercer Survey of Employer-Sponsored Health Plans
fund
spen
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Employer
Employee
Flexible Spending Account (FSA)
Employee
Employer
FSA
Qualified Medical ExpensesIRC 213(d)
Flexible Spending Account (FSA)
• Employer-sponsored benefit program via Section 125
• Employer determines eligibility
• Funded by employer and employee salary reductions
• $2,500 maximum employee contribution
• Use it or lose it rule
fund
spen
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HRA
Employer
Health Reimbursement Account (HRA)
EmployerQualified Medical Expenses
IRC 213(d)
Health Reimbursement Account (HRA)
• Employer established account
• Employer determines eligibility
• Funded by employer
• No maximum contribution
• Generally does not carry-over (unless allowed by employer)
fund
fund
spen
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QUALIFIED high-deductible plan
(no other plans allowed)
HSA
Employer
Employee
Health Savings Account (HSA)
Employee
Employer
Full Rollover Qualified Medical Expenses
IRC 213(d)
Health Savings Account (HSA)
• Anyone can establish account• Only in conjunction with coverage under a high-deductible plan
• Funded by employer and employee salary reductions
• Maximum contributions for 2013• $3,250 for individual• $6,450 for family
• Funds roll over each year and account is portable
Overview
Health Savings Account (HSA)
Health Reimbursement Arrangement (HRA)
Flexible Spending Account (FSA)
Balance carries forward Balance may carry forward Use or lose rule
Max annual contributions (2013) $3,250 Self Only, $6,450 Family, +$1,000 Age 55+
Employer determines annual contributions
$2,500 maximum employee contributions
Portable Generally not portable Not portable
Funds may be used for non-health expenses (but taxable + penalty)
Employer determines, but may only be used for deductible health expenses (IRS rules)
Funds may only be used for deductible health expenses (IRS rules)
Further questions?Nancy KokengeArea Vice President, Client ConsultantEmail: [email protected]: 509.901.1313
Jessica HaguewoodClient ConsultantEmail: [email protected]: 509.838.5571