The reimbursement of care health is a common strategy among employers of all sizes because it allows employers to control the costs of health care and provides employees a greater choice in how they spend their health care dollars.
To small business , reimbursement of health care is a new alternative to offer traditional health insurance coverage .
This article outlines the different types of reimbursement of health care costs strategies, this type of health expenditure, they can repay.
repay personal health insurance
If the company wants to reimburse employees for their personal health insurance expenses, types of Plans are available:
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Article 105 health repayment Plan (HRP)
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an autonomous person account repayment of health (HRA) - available only for companies with a participant
these two types of repayment arrangements are 100% employer-funded, tax benefits and theoretical arrangements. means a theoretical arrangement of the company reimburses employees after they have a health burden.
Expenditure Paying Out-of-Pocket Medical
For companies seeking to reimburse employees for medical expenses out of pocket as co-pays, prescriptions and allowable expenses, there are a few options:
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Health savings account (HSA) - Note: employees must have a high deductible health plan to qualify for an HSA
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health account flexible spending (FSA)
help employees pay for health care expenses before tax
Finally there are types of plans that allow employees to pay before taxes (or reimburse themselves tax-free) for health care costs.
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Premium only Plan (POP) - now less frequent because they can not be used with the plans of the market
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account health flexible spending (FSA)
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savings account health (HSA)
Related - HSA vs HRA vs HRP vs FSA comparative table
Conclusion
for small businesses looking to help employees with the cost of health expenditure, there are several repayment plans available before taxes such as CRH, HRPS, HSA, ASF and POP. Which plan is best for your small business? Understanding how each type of repayment plan works and what types of health expenses are reimbursable is a good place to start.
What questions do you have on the reimbursement of medical expenses? Leave a comment below. We will help you to answer.
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