Unreimbursed Medical Expenses

Unfortunately, even with good health insurance plans, there are often a number of unreimbursed medical expenses. This is usually typical if all you have is a high deductible health plan in which a lot of money has to be spent out of pocket before coverage kicks in. Fortunately, the government has made a number of newer options available, such as HRAs, FSAs and HSAs.

A Solution for Unreimbursed Medical Expenses

HRAs are run by employers and are used to reimburse employees for certain qualified expenses. FSAs and HSAs are types of savings accounts that are owned and controlled entirely by the employee. All three of these accounts offer similar benefits, but there are a number of important differences consumers need to be aware of.

All three of these options, each available through take care, can help pay for unreimbursed medical expenses. Pre-tax dollars are deducted from employee paychecks and put into a savings account (with HRAs, the employer contributes the pre-tax dollars). Money is then drawn directly from these accounts, typically using a debit card or check book (HRAs require the employer to process the payment).

The main differences between these accounts lies in who qualifies, the amount of money that can be saved and what happens to any leftover money in the account at the end of the fiscal year. Nevertheless, in the case of all three accounts, there is greater flexibility afforded over more traditional health care plans. Most importantly, they provide an effective solution for most unreimbursed medical expenses since payment is made directly from the savings account.

Additional Topics

125 Plan

Account-Based Health Plans

Adoption Costs

Cafeteria Plan

CDHP

Commuter Benefit Accounts

Consumer-Directed Health Plans

Consumer-Driven Health Accounts

Daycare Costs

Dependent Care Flexible Spending Accounts

Employee Benefits