Detailed product placemats for MVP's wide range of plan options.
Detailed product placemats for MVP's wide range of plan options.
MVP offers spending account solutions tailored to support your business and help offset your employees’ health care costs. Our lineup includes Health Savings Accounts, Flexible Spending Accounts, Lifestyle Spending Accounts, and plan-integrated Health Reimbursement Arrangements. Choose from a variety of Flexible Spending Accounts and Health Reimbursement Arrangements to pay for medical, dental and vision, dependent care, or parking and transit expenses.
We also offer Individual Coverage Health Reimbursement Arrangements. This type of plan offsets your business’s premium expenses while helping your employees pay for individual health care premiums and eligible out-of-pocket medical expenses.
| Health Savings Account (HSA) | Flexible Spending Account (FSA) | Lifestyle Spending Account (LSA) | Health Reimbursement Arrangement (HRA) | Individual Coverage HRA (ICHRA) | |
|---|---|---|---|---|---|
| Do employees need a specific health plan to qualify? | Yes, QHDHP only | No | No | No | Yes, Individual (On of Off-Marketplace), Medicare |
| Who controls the account? | Employee | Employer | Employer | Employer | Employer |
| Who can contribute to the account? | Employee & Employer | Employee | Employer | Employer | Employer |
| How much can be contributed? | IRS-set annual limit | IRS-set annual limit | Employer-defined | Employer-defined | Employer-defined |
| Are there any tax benefits? | Yes, for employer and employee | Yes, for employer and employee | No, taxable | Yes, for employer and employee | Yes, for employer and employee |
| What can funds be spent on? | IRS approved medical, dental, vision, and Rx expenses | IRS approved medical, dental, vision, and Rx expenses | Employer approved non-medical expenses ex. wellness, fitness, etc. | Employer approved medical expenses ex. dental, vision, Rx | Insurance premiums and employer approved medical expenses ex. dental, vision, Rx |
| Will employees lose any unused funds? | No expiration | Expires annually1 | Expires annually1 | Expires annually1 | Expires annually1 |
| Can the funds grow over time? | Yes, investment options available | No | No | No | No |
| How are expenses paid? | Debit card, reimbursement | Debit card2 reimbursement | Debit card2 reimbursement | Automatic payment, debit card2, reimbursement | Debit card2 reimbursement |
1Some plans/employers allow for rollover
2Debit card payment varies by plan
Note: Receipts and Explanation of Benefits (EOB) should be kept for all purchases
Employers who are seeking to minimize the cost of providing health benefits by offering a qualified high-deductible health plan (QHDHP) may choose to offer an HSA. Since compliance requires less paperwork, employers can often save on administrative costs.
A key benefit of an HSA is that once the account reaches its required minimum balance, employees can invest their funds and save money for the future, just like a 401k. Employees can choose from a variety of investment options that fit their needs. Earnings and withdrawals for qualified medical expenses are tax-free.
A High-Yield Interest Option is available with all HSAs.* This option allows your employees to earn a higher interest rate on their HSAs account balance than the traditional interest option.
An LSA is a way for you to offer funds to your employees to use on a wide range of spending categories, from home office goods, to fitness, to education, or even pet care. Unlike other spending account options, an LSA uses post-tax dollars, therefore the IRS does not mandate eligible expenses, giving you more flexibility and control over what types of expenses are covered. Funds used are treated as taxable income.
A MERP is an IRS approved health plan arrangement where you reimburse your employees for out-of-pocket medical expenses incurred by your employees and their dependents. MERPs are tax free and customizable. The employer group determines which medical expenses are eligible and sets reimbursement limits. MERPs can be used to supplement a group health insurance plan, or they can be offered as an alternative to a group health insurance plan. Types of MERPs include:
An HRA can be a good first step to encouraging your employees to take a more hands-on approach to managing their health care. The employer sets aside a certain amount of money each year for employees to use for medical expenses not covered by their health plan, such as deductibles, co-insurance, or co-pays. Only the employer can fund an HRA. They may be designed in many fashions to suit the specific needs of the employer and employees. It is one of the most flexible types of employee benefits plans, making it very attractive to most employers.
The ICHRA allows employers of all sizes to reimburse their employees tax-free for medical expenses. Employees may use ICHRA funds to pay for individual health care premiums and/or eligible out-of-pocket medical expenses that they or their dependents may incur during the plan year. To participate in the ICHRA, employees must have coverage through an individual health insurance policy. Eligible policies include qualifying on-exchange or off-exchange coverage, Medicare Parts A and B, or Medicare Part C. Employers can offer a group health insurance policy to one class of employees and an ICHRA to another class of employees who choose their own individual coverage. For example, you can offer full-time employees group health insurance while offering part-time employees the ICHRA. You just can’t give the same class of employees a choice between the two.
The EBHRA allows employers to offer funds to employees to pay for excepted benefit premiums, such as standalone dental or vision coverage, short-term plans, COBRA premiums, and qualified medical expenses.
Reimburse employees for dental and vision out of pocket expenses.
An FSA is a benefit you sponsor for your employees. An FSA lets your employees set aside pre-tax dollars to pay for eligible expenses. Types of FSAs include:
A Health FSA allows employees to set aside pre-tax dollars for IRS approved medical, dental, vision and over-the-counter expenses for themselves and their dependents, even if they are not covered under the group medical health plan.
The LPFSA is designed to pair with the HSA and may be established to pay for eligible vision and dental expenses. Medical expenses are not permitted.
A DCA lets employees use pre-tax dollars to pay for eligible expenses related to care for a child, disabled spouse, elderly parent, or other dependent who is physically or mentally incapable of self-care.
A Parking and Transit FSA is an employer-sponsored benefit program that allows employees to set aside pre-tax funds in separate accounts to pay for qualified mass transit and parking expenses associated with their commute to work.
