How much are your employees spending each year in out of pocket costs like copayments, deductible, and prescriptions? Most people don't realize how much they spend each year on medical expenses. Spending Accounts are a great way to provide pre-tax savings for employees. Depending on your plan offerings there are different accounts you can offer.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-exempt account that employees can set up to pay for qualified medical expenses on a tax-free basis. HSA's are designed to give individuals tax advantages to offset for health care costs. An employee must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of an HSA.

Health Reimbursement Arrangement (HRA)

A Health Reimbursement Arrangement is funded solely by an employer. Employees are reimbursed tax free for qualified medical expenses up to a maximum dollar amount for a coverage period.

Flexible Spending Arrangement (FSA)

A Flexible Spending Arrangement (FSA) is an account that reimburses employees for medical and/or dependent care expenses. Contributions to a FSA are made pre-tax. The benefits are subject to an annual maximum and are also subject to a "use it or lose it" rule.