Cost-Saving Health Insurance Solutions

There are many solutions that  have been designed to save groups and individuals up to 40% on their health care costs.   

GROUP SOLUTIONS	INDIVIDUAL AND SELF-EMPLOYED SOLUTIONS
Health Savings Accounts (HSA)	Health  Savings Account (HSA)
Flexible Spending Account (FSA)	Health Reimbursement Arrangement (HRA)
Health Reimbursement Arrangement (HRA)	Temporary Insurance
Carrier Specific Plans	Individual PPOs
Group PPOs & HICs

The HSA, FSA and HRA are solutions that take advantage of the tax law.  The great thing is that these solutions can be offered side-by-side with your current plans.  You do not have to replace your offerings or your carrier to get their benefits. 

Comparison of the HSA, HRA AND FSA. 

*** We recommend that you read the individual sections on these three plan designs before reading  this table.    

	HSA	HRA	FSA
Who is eligible?	Anyone with a high deductible plan.	Any business with 2 or more employees.	All businesses, but typically implemented in larger organizations.
Who owns the funds?	Individuals	Employer only.	Typically funded by employee but either may fund (not both).
How are funds deposited?	Money is deposited directly into an account held by a financial institution.	Employer reimburses employee when presented with a valid explanation of benefits or receipt.	A set amount of pre-tax wages are deposited directly into the employee's account.
Must the maximum amount available under the fund plan be available at all times?	NO.	NO.	YES.  The FSA must have the full amount of coverage available even if the reimbursement exceeds the participant's acutal current contributions to the plan at time of reimbursement.
What type of corresponding  health plans are allowed?	From $1,000 - $5,000 deductible depending on type of coverage.	Any type of health plan.	Any type of health plan.
How does interest accrue?	Through tax free accounts set up in conjunction with the HSA.	Interest does not accrue.  This is a reimbursement arrangement, not an account.	Interest does not accrue.
May unused dollars be carried over to subsequent years?	YES	YES	NO, unused funds are forfeited.
Is there a specified period of coverage?	No, HSAs remain set up as long as the employee wishes.  If an  employee leaves the company, they take the HSA with them.	No.  There is no required period of coverage.  Employers can set up plans any way they choose including forfeiture or maintenance upon termination or retirement.  Remember, this is not an account, it is an arrangement.	YES
Do the tax laws prohibiting discrimination in favor of highly compensated and key employees apply?	YES	YES	YES
What is the tax treatment?	Qualified HSAs are tax free as long as the funds are spent on medical care as defined by the IRS section 213.  Contributions to the HSA  reduce annual taxable income.	Reimbursements to employees are tax free as long as they are used on qualified health care purchases.	Contributions to FSAs are tax free and reduce annual taxable income.