HS 351 Ch. 4
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Consumer-directed health plan
A medical expense plan that attempts to give members a strong reason to use health care services with the same prudence and economy they would use when paying any expense with their own money. These plans commonly feature a high-deductible health plan and an annual deposit of funds to a tax-favored savings account for the payment of health care expenses unreimbursed by the plan.
Health reimbursement arrangements (HRA)
A type of personal savings account from which unreimbursed medical expesnes can be paid. An HRA can be established only by an employer for its employees. An employer may allow a former employee to spend down the unused balance after retirement but is not required to do so.
Flexible spending account (FSA)
A cafeteria plan account, usually funded by before-tax salary reductions by employees. Monies can be withdrawn from the account to pay unreimbursed medical expenses.
A benefit program that permits employees to design their own benefit packages by purchasing benefits with a prescribed amount of employer dollars. Additional benefits can often be purchased on a payroll-deduction basis.
A cafeteria plan account that permits an employee to elect a before-tax salary reduction to pay his or her premium contribution to an employer-provided medical expense plan.
Health savings accounts (HSAs)
A type of tax-preferred savings account or fund that a person with a qualified high-deductible health plan may establish to pay for certain medical expenses. HSAs are similar to Archer MSAs but have more liberal funding and qualified health plan requirements.
Archer Medical Savings Account (MSA)
A tax-preferred personal savings account established with a qualified high-deductible health plan that conforms to provisions of the Health Insurance Portability and Accountability Act. Authorization for new accounts terminates at the end of 2005 unless the date is exteneded. Account holders may roll over balances into recently authorized health savings accounts (HSAs).
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