Classroom

What you need to know

How do contributions work for different healthcare accounts?

The main features of each type of CDHP healthcare account structure are outlined in the table below

FSA

  • Employee funded
  • Immediately available
  • Employer sets maximum contribution allowed
  • Employee may forfeit on termination if they don’t elect to keep the benefit on COBRA (Consolidated Omnibus Budget Reconciliation Act’s continuation of benefits)

HRA

  • “Use it or keep it” —value
  • Employer funded
  • Tax preferred
  • Immediately available
  • Rollover can be capped
  • Employee forfeits on termination
  • Employee may forfeit on termination if they don’t elect to keep the benefit on COBRA

HSA

  • “Use it or keep it” —equity
  • Employee and/or employer funded
  • Tax preferred
  • Only spend what is in the account
  • No cap on rollover
  • Permanent and portable
  • Earns interest and balance may be invested with no tax on growth
  • Cash-out feature for non-qualified medical expenses (20% penalty)

Coaches' Takeaway

Please review the table above.

Tools & Resources

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.

Library

Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.

Classroom

What you need to know