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Group Health, Dental and Vision Plans
Employers who provide group health, dental, and/or vision benefit plans are sending a powerful message that they care about their employees' health and well-being. This provides a tremendous benefit that is often unseen by employees. However, every employer realizes the effect of these benefits in recruitment, retention, and letting employees know they are interested in their employees and their employees' families.
Because we know that these benefits come
with a price, Roger Hicks and Associates Group Insurance,
Inc. want your decision-making process to be an informed
one. For that reason, we work with qualified
insurers and third-party administrators to offer you
both fully insured or self-insured options. If you are interested
in speaking with one of our experience group agents, please
contact us and let us know. We
will respond quickly to your request.
Interested in (Consumer
Driven Health Plans), Health Savings Accounts (HSA's),
or Health Reimbursement Accounts (HRA's)?
We can show you several ways to offer affordable insurance
for both you and your employees.
Consumer
Driven Health Plans
As health care costs continue to rise
and employers continue to search for ways to contain health
benefit expenditures, Consumer Driven Health Plans are becoming
a viable alternative for many employers to explore and implement.
More and more employers are asking their
employees to take an active interest in their health and
to participate in controlling health care costs. In an effort
to do so, the Consumer Driven Health Plan is quickly growing
in popularity with both employers and employees. The key,
however, is to bring a level of understanding (education)
to the workforce so that employees may make educated decisions
about how to spend the funds available.
One way that employers have found to be effective
is “cost shifting” to employees through higher
deductibles, co-payments and employee contributions. CDHP
works for the long-term in alleviating rising costs and
keeping employees satisfied. CDHPs deliver both choices and
savings.
CDHP’s purpose, if you will, is
to help modify employee behavior on how they spend their
health care dollars and in realizing that:
• The dollars they
have available are rolled over year to year to be
used whenever they need the funds—not just the year
the funds are made available.
• A higher deductible must be met
before their health care plan begins to cover medical expenses.
Therefore, the High Deductible Health
Plan (HDHP) is one way to implement a CDHP.
Usually, the HDHP is paired with a Health
Reimbursement Account (HRA) or a Health
Savings Account (HSA). These arrangements
offer a way for participants to pay for some or all of participant’s
health care expenses before the deductible is met through
a reimbursement account.
What is an HRA or HSA? How does this work
with our Section 125 Plan (also known as Cafeteria Plan)?
Click
here to view key differences of all these plans.
How do you know if a CDHP will work
for your company and your employees? We are experts in group
health care insurance and by contacting us today, one of
our experienced agents will show you all the options that
are available for you and your employees and make sound
recommendations based on your group size and needs. Every
employer is different with distinct philosophies--we understand
that and are prepared to help you every step of the way.
Contact us today and let us demonstrate
our commitment to what we do best.
Health
Savings Accounts (HSA's)
Health Savings Accounts (HSAs) were created
by the Medicare bill signed by President Bush on December
8, 2003 and are designed to help individuals save for future
qualified medical and retiree health expenses on a tax-free
basis.
HSA's are the latest in affordable health care. HSA's combine a qualified High Deductible Health Plan (HDHP) with a Health Savings Account. The High Deductible Health Plan covers serious illness and injury, while the Health Savings Account covers small expenses until the deductible is met.
An HSA consists of funds that, when deposited in the account, are tax-deductible to whomever deposits them – the employer, the employee, or both. The funds may draw tax-free interest or employees may elect to allow them to grow through investment options. Annual contributions reduce your taxable income and your qualified medical expenses are never taxed. All the money you set aside grows tax-deferred until age 65, when you can withdraw funds for any non-medical purpose at ordinary tax rates, or tax-free when used for medical expenses.
When compared to other consumer-driven health care options, an HSA provides the most flexible and long-term commitment opportunities to employees. Unlike other consumer-driven health care options, HSA's roll-over from year to year, the money belongs to the individual and is portable as employment changes, availability is not limited by employer size, and funds can be used for non-medical purposes after age 65 (ordinary tax applies).
Who is Eligible?
You are eligible for an HSA if:
- You are covered under a qualifying High Deductible Health Plan (HDHP).
- You are not covered under any other health plan than the HDHP.
- You are not enrolled in Medicare (typically age 65).
- You cannot be claimed as a dependent on another person's tax return.
The attached document defines the HSA concept
HSA Pdf
For more information on HSA's:
http://www.treasury.gov/offices/public-affairs/hsa/about.shtml
Health
Reimbursement Accounts (HRA’s)
Health reimbursement accounts consist
of funds set aside by employers to reimburse employees for
qualified medical expenses, just as an insurance plan will
reimburse covered individuals for the cost of services incurred.
The guidance provided by the Department of the Treasury
makes it clear that health reimbursement accounts are not
a new type of account designated within the Internal Revenue
Code. Rather, employers qualify for preferential tax treatment
of funds placed in a health reimbursement account in the
same way that they qualify for tax advantages by funding
an insurance plan. (Employers can deduct the cost of an
insurance plan -- and now a health reimbursement account
-- as a business expense under Internal Revenue Code section
162.)
Health reimbursement arrangements are
open to employees of companies of all sizes, unlike medical
savings accounts that are only available for small business
employees. A health reimbursement account provides "first-dollar"
medical coverage until funds are exhausted. For example,
if an employee has a $500 qualifying medical expense, then
the full amount will be covered by the health reimbursement
arrangement if the funds are available in the account. Under
a health reimbursement account, the employer provides funds,
not the employee. All unused funds are rolled over at the
end of the year. Former employees, including retirees, can
have continued access to unused reimbursement amounts. Health
reimbursement accounts remain with the originating employer
and do not follow an employee to new employment.
To read more about HRA’s
http://www.bls.gov/opub/cwc/cm20031022ar01p1.htm
To view more information concerning HSA’s,
MSA’s, FSA’s and HRA’s go the IRS Publication
969 at: http://www.irs.gov/publications/p969/ar02.html
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