Tools & Resources

What you need to know

CDHP Healthcare Account Structure

There are three main health spending accounts which can be used to help pay for medical expenses that you or your dependents incur. These accounts help you manage your costs by using money that either you or your employer (or both) are regularly putting into an account.

FSA

  • Use it or Lose it
  • Employee funded
  • Tax preferred
  • Immediately available at beginning of plan year
  • Employer sets maximum contribution allowed
  • Rollover is not permitted
  • Employee may forfeit on termination if they don’t elect to keep the benefit while on COBRA

HRA

  • Use it
  • Employer funded
  • Tax preferred
  • Immediately available at beginning of plan year
  • Rollover can be capped
  • Employee may forfeit on termination if they don’t elect to keep the benefit on COBRA

HSA

  • Use it or keep it – build 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)

Library

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

GO TO LIBRARY