HRAs or HSAs, How Does an Employer Decide?
June 10, 2009
Introduction
As health care costs soar, employers are forced to find ways to (1) cut costs and/or (2) shift more of the costs to participants. They are accomplishing this by increasing deductibles, co-pays and co-insurance amounts and reducing benefits. The theory is if participants are more responsible for paying health expenses they will be more responsible with their own dollars.
Two vehicles that employers are considering in cutting costs and/or shifting more of the cost to employees are Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs). Because the interplay between these two vehicles in any year is very limited, an employer must decide which one is best for its situation. To assist an employer in deciding between HRAs and HSAs, the following discussion compares the important features of each in a question and answer format and then discusses their advantages and disadvantages.
Click here to DOWNLOAD the complete “HRAs or HSAs,How Does an Employer Decide?” Guide.
AN EMPLOYER’S GUIDE TO HEALTH SAVINGS ACCOUNTS (HSAs)
June 10, 2009
Introduction to the Guide
The following provides you, as an employer, with information about Health Savings Accounts (“HSAs”) under Internal Revenue Code (“Code”) Section 223. You should read this explanation to evaluate whether HSAs may be used either as an alternative to, or in addition to, health flexible spending accounts (“Health FSAs”) under Code Section 125 or Health Reimbursement Arrangements (“HRAs”) under Code Section 105(h).
To fully understand the requirements of these new accounts, the following discusses their terms and compares their advantages and disadvantages over Health FSAs and HRAs in a question and answer format. In addition, a chart comparing both Health FSAs and HRAs with HSAs is included at the end of this explanation.
It is important to remember that this explanation is not intended to serve as a substitute for the advice of your lawyer, accountant, or other personal tax or financial advisor.
Click to DOWNLOAD the complete document”AN EMPLOYER’S GUIDE TO HEALTH SAVINGS ACCOUNTS” (HSAs)”