Choose the right health care account: stay well - and well-financed - with an array of savings options.
Journal of Accountancy › Vol. 203 Nbr. 3, March 2007
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Choose the right health care account: stay well - and well-financed - with an array of savings options.
EXECUTIVE SUMMARY
* Health spending accounts offer opportunities for employees to save and pay for health care with pretax contributions. Three basic types are flexible spending arrangements (FSAs), health reimbursement arrangements (HRAs) and health savings accounts (HSAs). * FSAs are typically funded by pretax payroll deduction and are subject to cafeteria plan regulations, including a "use-it-or-lose-it" rule that prevents carryover of unused amounts to future years, unless an employer has adopted a 2 1/2-month grace period provision. COBRA provisions, however, allow benefits to continue if an employee has a qualifying event such as termination of employment. * HRAs may accompany high-deductible health plan (HDHP) coverage, and the employer and employee may share the deductible's c...See the full content of this document
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