HDHPs and HSAs Flashcards
1
Q
HDHPs and HSAs
Purpose of HSA
A
Save for healthcare expenses on pretax basis
2
Q
HDHPs and HSAs
Aggregate and Embedded Deductibles
A
- Aggregate = Family member liable for full allowed amount until family deductible is met
- Embedded = Each family member is subject to lesser of: individual deductible and remaining family deductible
3
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Account Owner
A
- HSA = EE
- HRA = ER
- FSA = ER
4
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Who can Contribute?
A
- HSA = EE and ER
- HRA = ER
- FSA = EE and ER
5
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Are Contributions Tax-Deductible?
A
- HSA = Yes
- HRA = Yes (ER contributions are excluded from gross income)
- FSA = Yes (Except LTC ER contributions)
6
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Rollover of Funds
A
- HSA = Yes
- HRA = Yes, but not required and typically don’t
- FSA = Yes, but not required. ERs typically have use it or lose it policy
7
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Is HDHP Required?
A
- HSA = Yes
- HRA = No
- FSA = No
8
Q
HDHPs and HSAs
HSA vs. HRA vs. FSA
Distributions that Aren’t Eligible
A
- HSA = Amts covered under another health plan
- HRA = Amts covered under another health plan
-
FSA
- Amts covered under another health plan
- Health insurance premiums
- LTC premiums/expenses
9
Q
HDHPs and HSAs
HSA Tax-Free Distributions
A
- Medical
- Rx
- Dental
- Vision
- LTC Premiums
- Medicare Premiums
10
Q
HDHPs and HSAs
HRA Tax-Free Distributions
A
- Medical
- Rx
- Dental
- Vision
- Health Insurance Premiums
- LTC Premiums
- LTC Expenses
11
Q
HDHPs and HSAs
FSA Tax-Free Distributions
A
- Medical
- Rx
- Dental
- Vision
12
Q
HDHPs and HSAs
Examples of Consumer Behavior in HDHPs
A
- Savings for healthcare services
- Selecting more appropriate treatment venue
- Avoiding unnecessary care
- Selecting generics over brand name
- Comparing quality ratings of providers
- Negotiating prices with providers
- Improving own health and taking illness-avoidance measures
13
Q
HDHPs and HSAs
Other Factors that Could Make HDHPs Work Better
A
- Cost transparency
- Discussions between providers and patients
- Prefunding of HSAs
- Allowing more first-dollar coverage
- Lengthened consumerism (more skin in the game for individuals)
