Spending Account Solutions

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 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.

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.

Reimburse employees for dental and vision out of pocket expenses.

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.