HSA - HRA - CDHP

Health Spending Accounts

Health spending accounts are tax-free plans that help to fund employee health care expenses.

They are designed solely for health care saving and spending. These accounts are a benefit to employees and a business deduction for the company. There are three types: flexible spending accounts, medical savings accounts, and health reimbursements.

Flexible spending accounts don’t allow you to keep leftover money in the account after health care expenses are used each year. They can, however, substantially lower your taxes.

With medical savings accounts, savings are rolled over every year and are portable, regardless of employment status. These accounts are generally only available to smaller businesses.

Health reimbursement arrangements are relatively new, and are open to employees of all different sizes of businesses, unlike medical savings accounts. For these accounts, the employer provides funds instead of the employee, and leftover funds are rolled over a the end of the year. If an employee changes jobs, they will lose their health reimbursement arrangement.

Health Reimbursement Arrangement

Health care costs are expensive. To help manage the costs, employeers have been looking for more creative ways to reduce payments and keep employees happy. Health Reimburement Arrangements (HRAs) are health plans designed to help keep group healthcare costs for employees manageable. Although they were designed over fifty years ago, HRAs were refined by the IRS in 2002. After the IRS stepped in, employers were able to adopt new customizable health care plans with more patient-directed options. The popularity of HRAs is growing quickly, with many employers choosing to offer them in addition to, or in place of, health insurance.

HRAs are among the most flexible insurance products on the market. These federally approved accounts may be tied to high deductible insurance plans, or they may be offered on their own. HRAs allow funds to be placed in a special account to reimburse employees for out-of-pocket medical expenses that they may incur. HRAs are employer-funded, and cannot be funded in any other way. Because they are organized this way, there is little risk of forfeiture of unused funds. Unused HRA funds roll over on a yearly basis, and if they go unused, can continue to rolled over until they are needed.

HRAs can raise the amount of confidence and happiness that your employees have in your business. Contact ENERGI today to learn more.

CDHP

Workplace safety standards have become an important issue for all types of businesses regardless of occupational risk. It is the responsibility of the employer to create an operational environment that is conducive to safe practices and it is the right of the employee to work in a place that is non-threatening and secure. Because each industry poses a different threat risk, with no business being void of all danger, it is imperative that your business comply with all health and safety standards.

A Client Driven Health Plan will contribute to the well-being of your company. This type of system will perform a comprehensive set of functions to support monitoring of employee health and workplace conditions for all industries.

ENERGI cares about your business and will help you attain a safer, healthier working environment with a Client Driven Health Plan.

For a free quote on HSAs, HRAs, and CDHPs, contact ENERGI today!