Consumer-Directed Health Plans

With a health spending account from Blue Cross Blue Shield of Michigan, employers and employees can lower their health care costs while saving money.

Why offer consumer-directed health plans?

1.
These integrated solutions help to cut costs while providing a complete benefit package.
2.
These plans provide a tax advantage allowing employees to plan for current, future and retirement health care costs.
3.
These plans allow employees to take ownership of their health care.

Types of accounts

Consumer-directed health plans, also known as CDH plans, allow employees to pay for out-of-pocket medical expenses through these tax advantaged accounts. 

Blue Cross offers three different types of consumer-directed health care accounts. Each offers employees more control over their health care costs. 

Health savings accounts

Health savings accounts, or HSAs, work like a 401(k) account for medical expenses. The employee owns the account, and can be funded by pretax payroll funds, post-tax contributions or by you, the employer. They decide how to use their funds, which often translates to more responsible health care spending.

These plans must be paired with a High Deductible Health Plan and are a good choice for employers who want to spend less time managing employee health care. As a cost-sharing plan it can also help to lower company expenses. Employees will benefit, too, because HSAs offer a lot of tax savings and investment choices.

Health reimbursement arrangements

This solution, often abbreviated as an HRA, allows for reimbursement of qualified expenses, like medical, pharmacy, dental and vision, as determined by the employer. 

Unlike an HSA, you, the employer, are the only party who can fund the account. This means you can budget and decide in advance how much to spend on your employees’ health care. HRAs also are owned by the employer, which means your company keeps any funds your employees don’t use.

Flexible Spending Accounts

Flexible Spending Accounts, or FSA, is owned by you. It allows employees to save on taxes and pay for qualified expenses. 

This type of account can be funded by both you and your employee based on IRS guidelines. It is a use it or lose it type of account. Which means, if your employee doesn't use the funds in this account you can keep them. 

There are three types of FSAs that you can offer your employees. 

  1. Health Care FSA
  2. Dependent Care FSA
  3. Limited Purpose FSA

You can learn more about these specific types of FSA accounts here

CDH administration

These three types of plans - HSA, HRA and FSA are offerered through a partnership with HSA Bank and Health Equity. Both of these administrators offer the full suite of CDH solutions and are fully integrated with Blue Cross to provide:

  • Daily membership and claims feeds
  • Co-branded debit cards
  • Single login for easy account access
  • One bill from Blue Cross

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Browse brochures, videos and posters designed to help your employees get the most out of their Blue Cross coverage.

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Explore health care insights

Read about the latest news and innovations from the experts themselves.

See all insights
UPCOMING WEBINAR

Blue Cross Masterclass

Join a live presentation with our health care experts, examining topics you've told us mean the most to your business.

Reserve your seat
ARTICLE

What you need to know about the coronavirus

Read the latest updates on how officials and are responding to the global pandemic.

Read more
TOOLKITS

Resources to share with your employees

Browse brochures, videos and posters designed to help your employees get the most out of their Blue Cross coverage.

View toolkits