Consumer Driven Health Plans WSAC Employee Health Care Benefits Forum
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 spend Employer Employee Employer FSA Qualified Medical Expenses IRC 213(d)
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 spend HRA Employer Qualified Medical Expenses IRC 213(d)
Employer established account Employer determines eligibility Funded by employer No maximum contribution Generally does not carry-over (unless allowed by employer)
fund spend QUALIFIED high-deductible plan (no other plans allowed) HSA Employer Employee Employer Full Rollover Qualified Medical Expenses IRC 213(d)
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
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 Kokenge Area Vice President, Client Consultant Phone: Jessica Haguewood Client Consultant Phone: