Saving for the future is important. With changing healthcare laws, increasing deductibles, higher out-of-pocket costs and varying great unknowns, saving is more important than ever. So, what are they ways you can help protect yourself? Health savings accounts and flexible spending accounts for starters.
As companies begin to realize the traditional ‘group’ insurance is not the most affordable option for both the employee and the employer, more customizable plans are arising. The term you will see used for this is CDHPs. Consumer-directed health plans. People will have the option to choose their own plans and price matters. A higher deductible plan is usually chosen unless they have a planned illness. (Planned illness meaning, pregnancy, knee surgery, etc) This is where a HSA and FSA come in handy. These are accounts individuals can set up to pay for those costs on a pre-tax basis.
There is a great article published today Bankrate.com that goes into detail on the Health Savings Accounts and Flexible Spending Accounts. I suggest the read if you are not quite sure of the differences of the account types. They also do mention a PRA (Premium reimbursement arrangement) which violates the Affordable Care Act. There are ways to make sure you stay compliant and still take care of your employees. However, now I am talking about Focus Options. That is an entire other article.
Good Friday. Cheers.