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Account-Based Health Plans In recent years, there has been a revolution in account-based health plans, as reflected by take care's extensive line of plans. FSAs, MSAs, HRAs, and HSAs are acronyms for a variety of new health options designed to provide better, more flexible care with greater consumer control. Nevertheless, as with any new product, account-based health plans can be confusing if consumers are not properly informed, causing many eligible individuals to miss a good opportunity. Explaining Account-Based Health Plans Flexible spending accounts, or FSAs, are tax-exempt accounts in which money is placed for a number of eligible medical expenses. The amount of money placed into this account must be decided at the beginning of the year and must be within the minimum and maximum levels set by the employer. Money is then deducted from the employee's paycheck (prior to taxation) throughout the entirety of the year. The main drawback of this account is the fact that any unused money left in the account must be forfeited. However, because items like contact lens cleaner often qualify, there's no need to have leftover money. Medical savings accounts are another type of account-based health plan. These plans are designed for individuals who are self-employed or work for a small business. Typically, these plans do not allow as much money to be saved into your account, but whatever is left over at the end of the year gets to be carried over for future expenses. One of the most popular account-based health plans currently available is the health savings account, or HSA. Not only does this plan allow a higher limit on the amount of money that can be saved, but it also allows any leftover money to be rolled over for the following year. Although HSAs require the purchase of a high deductible health plan, they offer incredible flexibility and include a wide range of eligible medical expenses, including certain over the counter medications. |
Additional Topics Consumer-Directed Health Plans Consumer-Driven Health Accounts Dependent Care Flexible Spending Accounts Flexible Health Spending Accounts Flexible Medical Expense Accounts Health Care Flexible Spending Accounts Health Reimbursement Arrangements IRS Section 125 Cafeteria Plans Medical Expenses and Income Tax Plan for Medical that Health Insurance Doesn't Cover Save 25% to 40% on Health Expenses Save on Co-Pays and Over-the-Counter Medications Save on LASIK and Orthodontic Costs Section 125 Plan Administration |
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