Benefit accounts, also known as ‘Consumer-Directed Healthcare’ (CDH) accounts, allow pre-tax money to be set aside for eligible expenses that might not be fully covered under traditional health plans. These accounts are often paired with ‘high deductible health plans’ (HDHPs), a newer type of employee health care plan that offers more affordable monthly costs to both employers and employees versus traditional health plans. It is also common for employers to offer a contribution match into benefit accounts for HDHP participants.
*Data via SHRM
What Are HSAs, FSA, & HRAs?
There are three primary types of benefits accounts. When examining what type of account is right for your company and for employees, consider the following:
Health Savings Account: A health savings account (HSA) combines high deductible health insurance with a tax-favored savings account. Money in the savings account can help pay the deductible. Once the deductible is met, the insurance will kick in and start paying. Money left in the savings account earns interest and is the employee’s to keep.
Health Reimbursement Account: A health reimbursement arrangement (HRA), or referred to health reimbursement account, is an employer-funded, tax advantaged employer health benefit plan that reimburses employees for out-of-pocket medical expenses and individual health insurance premiums. HRAs are fully owned and managed by employers; employees cannot contribute.
Flex Spending Account: A flexible spending account (FSA) is a special account that is used to pay for certain out-of-pocket health care costs. The money in an FSA is not taxed. The account is owned by the employer, thought both the employee and the employer can contribute.
Why Outsource HSA/FSA/HRA?
Cost and convenience are the two primary perks of outsourcing your CDH account administration. Though offering HDHPs with CDH accounts can help make your insurance packages more affordable for both your company and your employees, this additional program will inevitably add more work for your HR team. And, like everything else benefits-related, each of these accounts has specific regulations and requirements for administration. Save valuable time and money by shifting this administration to the experts. And, outsourcing will also provide your company with other valuable assets, like an employee contact center, online account management, educational tools, and more!
How’s that for convenience?
What Does HSA/FSA/HRA Outsourcing Include?
PlanSource offers fully managed tax-advantaged benefit accounts, including Health Saving Accounts (HSAs), Flexible Spending Account (FSAs) and Health Reimbursement Accounts (HRAs) that add value to your benefits program and reduce your payroll tax obligations.
Request reimbursements and provide receipts
Online Account Management
View account balance and transaction history
Manage accounts and submit reimbursement request
Contact Center Assistance
Get answers to questions about reimbursements, card status, etc.
Use one MasterCard for all benefit accounts
Request additional cards for all dependents
Calculate tax savings and access list of eligible expenses
Online FSA/HSA Store
Purchase OTC items at a discounted price with FSA & HSA dollars
Don’t forget to view our complete benefits outsourcing guide for more information about benefits outsourcing statistics and best practices!
Ready To Hand Your CDH Accounts Off To The Experts?
Our benefit account experts are ready to help! Schedule your complimentary consultation today.