Chatpter 5 Part 3 Flashcards
High deductible health plans are often used in coordination with
Medical savings accounts
Health savings accounts
Health reimbursements accounts
Higher deductible health plan features higher annual deductibles and out of pocket limits than traditional health plans which means
Lower premiums
Except for preventative care the annual deductible must be met before
The plan will pay benefits
Hdhp credits a portion of health plan premium into the coordinating msa hsa or hra
On a monthly basis
Deductible may be paid with funds from coordinating account plan
How do employer contributions to a health savings account affect the insureds taxes
Employer contributions are taxed to individual insured as earned income
Employer contributions are deducted from individual insureds tax calculation
Employer contributions are not included int he individual insureds taxable income
Employer contributions are not included in the individual insureds taxable income
Person must obtain coverage under qualified health insurance plan with established minimum deductibles
1500 for singles and 3000 for families in 2023
Contribution limits are
3850 for singles and 7750 for families
When opening account individual must be under the age of
Medicare eligibility
For taxpayers aged 55 years and older additional contribution amount is allowed
1000 up to
Insd set aside by employers to reimburse employees for qualified medical expenses such as deductibles or con insurance amounts
Health reimbursement accounts hra
How are employer contributions to health reimbursement accounts treated in regards to taxation
They are tax deductible
They are taxed as a regular business expense
They are treated as income tax for the employer
They are excluded from all taxation
Contributions to hra are tax deductible
Who determines the eligibility and contribution limits of an hra
Insurer
Employer
Employee
State
Employer
Employers can reduce health plan costs by coupling a health reimbursement account hra with
High deductible health plan
Low deductible health plan
Ira
Nothing no coupling
High deductible health plan
What size comprises are eligible for health reimbursement accounts hra
Companies of all sizes
Small employers only
Sole proprietors only
Companies with at least 100 employees only
Companies of all sizes
Who determines eligibility and contribution limits in hra
Employer determines both
Which is available to employs of all sizes
Hra
Msa
Lpa
Hsa
Hra
Insured has 1000 hra account through employer
Incurred 740 in medical expenses first year of plan. How much will insured be able to roll over toward next years expenses
0
250
750
1000
250
When employee covered under health reimbursement account changes employers the hra
Stays with employer
Follows employee
Returns to insurer
Is split between employee and employer
Stays with the employer
Hra allow employees to roll over unused benefits to the following calendar year in
Addition to new benefits
Which is true about hra
Account does not allow roll over of unused balances at end of year
Account allows rollover of unused balances at end of year at employer’s discretion
Account allows rollover of unused balances at the end of the year at the employees discretion
Allows rollover of unused balances at end of year at employer’s discretion
Insured has 500 left in his health reimbursement account when he quit his job
What happens to that money
It my be rolled over into hra with new employer
Insured can use up to 500 as long as he has qualified medical expenses
Insured can have access to 500 at previous employer’s discretion
Insured can have access to 500 at previous employers discretion
Hra have no statutory limit and
Limits may be set by employer
Designed to replace lost income in event of this contingency and is vital component in comprehensive ins program
Disability income ins
May be purchased individually or through an emp on group basis
Disability income ins
G period imposed on insured from onset of disability until benefit pay amends commence
Elimination period
Deductible measured in days instead of dollars; purpose is to eliminate coverage for short term disabilities in which insured will be able to return to work in relatively short period of time
Elimination period
Elimination period found in most policies range from
30 to 180 days
Just as higher deductible amount results in lower premiums for medical ins a longer elimination period translates into
A lower premium for disability income ins
Important consideration in selecting elimination period is that
Payments are made in arrears
Money owed should’ve been paid earlier
Arrears
Time deductible designed to eliminate overage for short term disabilities and reduce the filing of excessive claims
Elimination period
Another type of waiting period imposed under some disability incom policies
Probationary period
Probationary period Does not replace elimination but
In addition to it
