HSAs vs HRPs (savings accounts against reimbursement plans)

HSAs vs HRPs (savings accounts against reimbursement plans) -

Which is better: A Healthcare Reimbursement Plan (HRP) or health savings account (HSA)? The answer depends on what you want to achieve and if you are an employer or an employee. HRPs are superior HSAs For most employers.

What is a Health Care Reimbursement Plan (HRP)?

A health reimbursement plan or HRP is fictional account that employers use employees for individual health insurance premiums to be reimbursed. Funds not accumulate in a segregated account; Rather employers pay only arise after their employees eligible costs.

What is a Health Savings Account (HSA)?

to pay a health savings account or HSA, a financial account is established by an individual for qualified medical expenses. HSAs must be linked with a qualified high deductible health insurance plan, and everyone can help

HSA vs HRP -. Which one is right for your business?

Several features make HRPs superior for employers, while still benefiting employees. HSAs generally prefer employees but are more expensive employer. There are key similarities and differences to remember

HRP vs HSA - Similarities

Employer contributions both HRPs and HSAs are tax-deductible. Employees are not taxed on such contributions. Employers HRP contributions are excluded from wages, while employees deduct usually HSA contributions on their personal tax return.

Both HRPs and HSAs encourage employees "consumerism", help employees to pay attention to health care costs and use health cautious.

Generally HRPs are better for employers, while still very beneficial to the employee. In order to make the right decision, but employers have the main differences between HRPs and HSAs.

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HRP vs HSA - Important differences

The differences between HRPs and HSAs refer to control, flexibility and simplicity

• [1945013Control]. Employers have more control over the costs associated with HRPs. Only employers can contribute HRPs and to reimburse the agent for actual expenses. With HSAs are contributions, incurred whether or not expenses. Employees losing unused funds HRP when they change jobs, but keep all unused HSA employer contributions.

• flexibility. With HRPs employers can adjust posts from the category of employees (eg, management, IT, employees). HRPs can be used with any kind of health insurance. Moreover HRPs are easier to use in connecting to other employee benefits such as cafeteria plans and FSAs.

• simplicity. HRPs are easier to understand, manage and administer. Employees must not save receipts for several years, pay concerns about tax deductions or monthly to their bank or broker management fees.

Healthcare Reimbursement Plan (HRP)	health savings account (HSA)
Control
employers pay after you accrue costs, and only to the extent of the contributions.	employer paid in full at the beginning of the year, incurred any cost.
funds to stay with the employer if the employee leaves the company.	[1945034[ funds go to the employee when he / she leaves the company.
Employers can help only.	employers, employees or third can contribute.
[1945013Flexibilität]
employer selects maximum contribution.	IRS determines maximum contribution.
No restrictions for health insurance.	They must be combined with qualified high deductible plan.
vary posts of class employees.	All employees receive the same employer contribution.
may be used with FSA, few restrictions.	May be used only with restricted, limited purpose FSA.
Simplicity
paid by account company bank funds.	is an employee account with the bank or brokerage and separate policy with insurance company.
employee submits documentation of eligible expenditure.	employees account managed and targets eligible expenditure for the payment.
rules are relatively simple; driven by IRS guidelines govern the Affordable Care Act and business plan design.	Complex IRS regulations costs, financing, investment and fiduciary requirements.

HRP vs HSA - superior for most employers, HRPs are

With HRPs, the best-in class healthcare reimbursement software platforms offer the flexibility to create and manage to control how much the employer pays, and take other health plans and support separate employee classes. Healthcare reimbursement software can create electronic plan documents and communicate the new plan to the employees employers. Software also makes sure the plan with the applicable requirements including IRS, ERISA, COBRA, HIPAA and ACA will be fully compatible.

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