Healthcare Spending Accounts
HRA, HSA and FSA options
As part of our VitalCare solutions programs, Scott & White Health Plan can offer integrated HRA, HSA and FSA administration.
Health Reimbursement Arrangement (HRA)
HRAs are funded solely by the employer as eligible expenses are processed. This provides an opportunity for employers to offset the large deductible exposure to employees and reduce premiums by implementing a higher deductible plan. The employer sets the funding level, maximum contributions, and the maximum roll-over amount from year to year.
Unused funds can be carried over to the next year to cover future health care expenses; which provides an incentive for employees to use their HRA wisely. If funds are exhausted, the employee is responsible for satisfying the remaining deductible before the plan begins to pay. If the employee changes jobs, the money stays with the employer.
Health Savings Account (HSA)
HSAs were designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis. The employer, employee - or both - can fund the account. A qualified high deductible health plan (QHDHP) must be in place in order to offer an HSA. Funds roll over from year to year, and are portable. Click here to learn more about HSAs.
Flexible Spending Accounts (FSA)
This account can pay certain medical expenses with pre-tax dollars. The employer and employee set the funding levels. FSAs reduce employees' taxable income and cut an employer's payroll costs.