How to choose an HSA, FSA or HRA for your employees
Who is this for?
If you’re interested in health plans that pair with health spending accounts, this explains the three kinds of spending accounts and how to make the right choice for your employees.
Those acronyms refer to accounts or arrangements you can use to pay for medical expenses. There are three kinds: a health savings account (HSA), health reimbursement arrangement (HRA) and flexible spending account (FSA).
These accounts are part of what’s called consumer-directed health care. Because of that, they’re all designed to have certain advantages, for both employer and employee:
- More control over your health care costs
- Potential tax savings—money that goes in and out of these accounts can be tax exempt or tax deductible
- Lower health care costs—consumer-directed health insurance plans are usually less expensive
Which one is best for you and your employees? We’ll try to help you decide.
Note: There are occasions when you can offer—and employees can have—more than one of these accounts. For more information, call your agent or regional sales office.