HSA 4321 Lecture Notes - Lecture 22: Loss Ratio, Money Market Fund, Health Reimbursement Account
Document Summary
Chapter 7- health savings accounts and consumer-directed health plans. Alphabet soup: fsa - flexible spending account, hra - health reimbursement account, msa - medical savings account, hsa - health savings account. Fsa- flexible spending account: must be established by an employer through a cafeteria benefit plan (irs section 125, employees annually deposit pretax income into the account to be used for medical expenses not covered by insurance. Hra- health reimbursement account: account established & funded by an employer beginning in 2001. No limits on the size of such accounts. Balances roll over from year to year. Allowable medical expenses defined by the employer: used to pa(cid:455) fo(cid:396) (cid:373)edi(cid:272)al e(cid:454)pe(cid:374)ses (cid:374)ot (cid:272)o(cid:448)e(cid:396)ed (cid:271)(cid:455) the e(cid:373)plo(cid:455)e(cid:396)"s health pla(cid:374) (hdhp (cid:374)ot eligible) But the employer need not offer a health plan: balance belongs to the employer. Limited to 750,000 persons who were self employed or employed by a small firm (<50) Can be rolled over year to year.
