Additional Options to Complement Your Benefits
Healthy Savings Account (HSA)
A HSA is a tax-advantaged savings account available to those enrolled into a high-deductible health plan (HDHP). It can be tapped into for qualified medical expenses as well as for other costs like dental and vision care. HSA funds roll over and accumulate year to year if they are not spent. Commonly an HSA & HDHP combo may be offered to provide an effective cost control for an employer’s health insurance.
Flexible Spending Account (FSA)
A FSA is a tax-advantaged savings account available to employees. While it is commonly used to help pay for qualified medical expenses, the list of eligible expenses is relatively robust and FSA funds can be used for what many would consider routine expenses.
Health Reimbursement Account (HRA)
An HRA is an employer-funded account which reimburses employees tax-free for qualified medical expenses up to a fixed dollar amount per year. Unused amounts may be rolled over to be used in subsequent years. Commonly an HRA may be used to reduce out-of-pocket expenses for employees before they reach their deductible, effectively bridging the gap, a viable strategy for an employer looking to reduce costs by offering mid to high deductible health plans.
Employee Assistance Program (EAP)
An EAP is a program that employers can offer to provide confidential assessments, short term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems.
Employee Wellness Program (EWP)
An EWP is a program undertaken by an employer in order to help maintain & improve employee health. Parts of an EWP may include things like health assessments, employee seminars, nutrition & fitness guidance, wellness incentives/ discounts, etc. A well-designed EWP can be both advantageous to employees and the employer’s bottom-line.
Premium Only Plan (POP)
A POP is an effective way for an employer to help their employees reduce their taxable income, and thereby increase their net pay, by allowing them to pay for some of their group benefit premiums pre-tax. Pre-tax benefits may include the following – group medical, group dental, group vision, group disability, and group term life insurance.