In contrast to traditional health benefits plans, consumer-directed health plans were developed to empower and encourage covered members to evaluate their healthcare options with an eye on the cost and an incentive to spend dollars wisely.  Insight Benefit Administrators will help you design consumer-directed plans to encourage employees and their dependents, the consumers of healthcare, to make informed choices.

 

Comparison of Consumer-Directed Options:

Health Savings Account (HSA) Health Reimbursement Account (HRA) Flexible Spending Account (FSA)
What is it? A tax-advantaged account used to pay for qualified medical expenses of the account holder, spouse, and/or dependents. An employer-funded arrangement used to reimburse employees for out-of-pocket qualified medical expenses. An employer-established, tax-advantaged account funded by the employee to pay for qualified medical expenses with pre-tax dollars.
Who owns the account? The employee/account holder The employer The employee, but all account balance revert back to the employer at the end of the plan year.
Who can contribute? Employers, employee/account holder, or any third party. The employer The employee
Can unused funds be rolled over from year to year? Yes Determined by the employer’s plan design. No
Is there an annual contribution limit? In 2014, limits are $3300 for individuals and $6550 for families. Determined by the employer’s plan design. Determined by the employer’s plan design.
Will the account reduce out-of-pocket healthcare expenses of the account holder? Yes Yes Yes