Health Plan Option With More Employee Control
Employers are constantly seeking different ways to save money while continuing to provide health care benefits for their employees. A Consumer-Driven Health Plan (CDHP), a high-deductible health plan (HDHP) combined with a tax advantaged saving/spending account, is one option that offers advantages to both employers and their employees. MedCost Benefit Services is an experienced administrator of CDHPs and can help clients design a plan that allows employees to have more control over the way their health plan dollars are spent.
Health Savings Account Vs. Health Reimbursement Account
A Health Savings Account (HSA) and a Health Reimbursement Account (HRA) are both designed to work in conjunction with a HDHP to help keep premiums low. HSA contributions, interest, investment earnings and qualified distributions are tax-exempt for the employee and provide an employer with tax advantages because matching payroll tax contributions to Social Security and Medicare are reduced. Qualified employer reimbursements from an HRA offer employees the same tax-exempt benefit as an HSA while providing the employer with a tax deduction.
Available To Educate On CDHPs
If an employer is considering a CDHP, MedCost Benefit Services can eliminate any confusion by helping clients make the best choices for their company and employees. And to help educate health plan members about a CDHP, our Account Managers are available to participate in employee meetings to answer any questions.