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Unreimbursed Medical Expenses Unfortunately, even with good health insurance plans, there are often a number of unreimbursed medical expenses. This is usually typical if all you have is a high deductible health plan in which a lot of money has to be spent out of pocket before coverage kicks in. Fortunately, the government has made a number of newer options available, such as HRAs, FSAs and HSAs. A Solution for Unreimbursed Medical Expenses HRAs are run by employers and are used to reimburse employees for certain qualified expenses. FSAs and HSAs are types of savings accounts that are owned and controlled entirely by the employee. All three of these accounts offer similar benefits, but there are a number of important differences consumers need to be aware of. All three of these options, each available through take care®, can help pay for unreimbursed medical expenses. Pre-tax dollars are deducted from employee paychecks and put into a savings account (with HRAs, the employer contributes the pre-tax dollars). Money is then drawn directly from these accounts, typically using a debit card or check book (HRAs require the employer to process the payment). The main differences between these accounts lies in who qualifies, the amount of money that can be saved and what happens to any leftover money in the account at the end of the fiscal year. Nevertheless, in the case of all three accounts, there is greater flexibility afforded over more traditional healthcare plans. Most importantly, they provide an effective solution for most unreimbursed medical expenses since payment is made directly from the savings account. |
Additional Topics Consumer-Directed Health Plans Consumer-Driven Health Accounts Dependent Care Flexible Spending Accounts Flexible Health Spending Accounts Flexible Medical Expense Accounts Healthcare Flexible Spending Accounts Health Reimbursement Arrangements IRS Section 125 Cafeteria Plans Medical Expenses and Income Tax Plan for Medical that Health Insurance Doesn't Cover Save 25% to 40% on Health Expenses Save on Co-Pays and Over-the-Counter Medications Save on LASIK and Orthodontic Costs Section 125 Plan Administration |
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