A third could lead to changes in the rules governing employer-sponsored health reimbursement arrangements
Key features of Health Savings Accounts (HSAs) and Health Reimbursement Arrangements
(HRAs) Feature HRA HSA Funding Group-funded Group and employee funded Fund owner Group Employee Requires high No Yes deductible health care plan Eligibility All eligible employees Anyone without coverage and no Medicare Portable Group discretion Yes Tax Group reimbursements are * Group contributions not Contributions tax-deductible for the group subject to payroll taxes and tax-exempt for the * After-tax member member.
A health reimbursement arrangement
is particularly useful in the following situations:
With one system housing medical claims data and a second system storing health reimbursement arrangement
or health savings account records, each claim had to be processed at least twice, causing bill payment issues.
She said, "Our company was lucky enough to have an agent who kept looking for better options for us, and introduced us to the idea of a Health Reimbursement Arrangement
Revenue ruling 2003-102 held that an employee's receipt of a reimbursement from an employer-sponsored health flexible spending arrangement (health FSA) under a cafeteria plan, health reimbursement arrangement
or other employer health plan for over-the-counter (OTC) drugs is excludible from gross income under IRC section 105(b); however, amounts an employee pays for dietary supplements are not reimbursable or excludible, nor can the individual deduct such costs as section 213 medical expenses.
Obama administration agencies discouraged employer use of cash-for-coverage programs by ruling that those programs would amount to stand-alone health reimbursement arrangement
programs, without major medical coverage attached.
In April, Cigna HealthCare expanded the availability of its consumer-driven Cigna Choice Fund Health Reimbursement Arrangement
plans to businesses with 51 to 200 employees in several states: Arizona, Colorado, Texas, Connecticut, Maine, New Hampshire, Vermont, New York, New Jersey, North Carolina, South Carolina, Tennessee and Florida.
223 eligibility to make HSA contributions in various situations in which the individual is covered by a high-deductible health plan (HDHP) and also by a health flexible spending arrangement (FSA) or a health reimbursement arrangement
For workers with single coverage and arrangements that include access to HSA or health reimbursement arrangement
(HRA) programs, the average deductible has increased to $2,086, from $1,908.