Take advantage of our Personal Funding Account options to combine quality healthcare coverage with access to HSAs, HRAs, and FSAs. These options are ideal for employers looking to control healthcare costs or considering increased employee responsibility for healthcare expenses and decisions.
Adding plans with personal funding accounts can help groups to:
But encouraging employees to be healthier doesn’t just help an employer’s bottom line – it’s also the right thing to do. And it reflects the vision to collaborate with employers in fostering a culture of health among employees and their families.
For more information, read below and review our Personal Funding Account FAQ.
HSAs are employee-owned, fully portable tax-advantaged accounts that work in combination with a qualified, high-deductible health plan. An HSA allows employees to save for current and future medical costs for qualified medical expenses through tax-deductible contributions. The choice of whether and when to use funds in the HSA belongs to the employee. Funds in a HSA may be invested in money market accounts, mutual funds, and other financial instruments. Any unused funds are carried over from year-to-year and continue to grow tax-free.
An HRA is an employer-owned and funded healthcare funding arrangement that members can use to help pay for healthcare. Employers have the option to define qualified expenses to be paid using the HRA, including deductible, coinsurance, prescriptions and more within Internal Revenue Service guidelines. It is important to remember that HRAs are not portable. If an employee leaves the company, any unused portion of the HRA (after all prior claims have been paid) reverts to the employer.
A healthcare FSA is a tax-advantaged employer-sponsored healthcare spending account that members can use to pay for eligible healthcare expenses. Contributions to the FSA may be made by the employee and/ or the employer. Employee contributions are made pre-tax; employer contributions are tax-deductible. FSA funds are available on a “use it or lose it” basis. Unused funds do not rollover for future use. The employer is not permitted to refund any part of the balance to the employee.
For additional information, refer to our Personal Funding Account FAQ or contact your tax or financial advisor.
As always, we support you and your clients every step of the way with our consultative approach to helping you choose the best health plan and personal funding accounts.
Please note: This information is not intended to provide tax or legal advice. Employers should consult with their tax and legal advisors to determine whether the plans and their accompanying funding arrangements are appropriate for their unique needs and circumstances.