Health Reimbursement Account Facts

Many people are confused by their new health insurance options. In addition to normal health care, Flexible Spending Account holders have a cache of emergency cash to use for almost any qualified medical related bills. Typically, the contributions are automatically deducted from employee paychecks and deposited into a personal account for the employee and family. The Flexible Spending Account (HSA) does not have a rollover provision. So you run the risk of losing any extra funds at the end of the year. A Health Reimbursement Account (HRA) is not actually owned by the employee but instead by the employer. It is distributed as needed to employees and their families and can be rolled over from year to year. The health savings account is owned by the individual. The employee retains access to the unused account balance even upon termination.

Of course, this barely scratches the surface of the difference between these incredibly useful benefit programs. Contact Cambridge today to learn more about the modern ways you and your employees can prepare for medical emergencies. We look forward to the opportunity to design a comprehensive health care plan that will please both you and your employees.

The Health Care Flexible Spending Account

There are many new options in group life and health insurance. The health care Flexible Spending Account (FSA) is an account that is employee funded with tax deferred contributions. This money is made available to the employee to pay for medical expenses, including co-pays, not covered by their insurance. On the other hand, a Health Savings Account (HSA) is coupled with a high deductible insurance product. Another common supplement to these high deductible plans is the Health Reimbursement Account (HSA). This is a special type of account that is set up and maintained by the employer. Any leftover money at the end of the year is not forfeited but instead rolled over from one year to the next. The Health Reimbursement Account (HRA), Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) can be used at the same time.