Employees want to be sure they have the resources they need to pay for their health care needs. Employers want to control costs and promote healthier lifestyles. Consumer-directed health (CDH) plans provide pre-tax savings plans to help employers manage costs while making sure their employees can get the care they need at prices they can afford. Regence offers a variety of CDH programs designed to save employers and employees money through smart planning and healthier living.
Health savings account
Health savings accounts (HSA) enable employees to save and invest their health care dollars on a triple tax-advantaged basis—saving federal, state and Social Security taxes. Funds roll over from year to year to cover qualified medical expenses, and are portable from employer to employer. Enrollment in a qualifying high-deductible health plan is required with an HSA.
Health reimbursement arrangement
With a health reimbursement arrangement (HRA), employers decide the amount, determine which out-of-pocket medical expenses they'd prefer to reimburse for employees on a pre-tax basis, and whether unused balances can carry over to future years. Employees use an HRA debit card to pay for qualified expenses, and then funds are automatically taken out of the HRA account.
Health care flexible spending account
Employees using the health care flexible spending account (HCFSA) estimate their total yearly HCFSA contribution amount. Payroll deductions fund the account on a pre-tax basis to pay for eligible medical expenses. At the end of each year, unused funds revert to the employer. This rule applies to all FSA types.
Limited health care flexible spending account
Like the HCFSA, the limited health care flexible spending account (LHCFSA) enables employees to estimate a yearly contribution amount and set aside funds pre-tax to pay for specific services such as dental, vision and preventive care expenses.
Dependent care flexible spending account
With the dependent care flexible spending account (DCFSA), employees deduct pre-tax funds from their paychecks to save money for the care of their dependents. Employees pay directly for care and are reimbursed from the DCFSA.