Health Savings Accounts: Health Reimbursement Arrangements

The cost of health care in America has gotten out of control. Daily we hear horror stories about those that are uninsured and the troubles they face when they are hit with the cost of medical care. Health insurance itself has gotten expensive. The vast majority of health insurance policy holders rely on their employers for their health policies. This places a huge burden on businesses and places of employment.

Health savings account are a way to help offset the health insurance expenses and plan for future medical costs. They give the policy holder a greater degree of control over the funding and help the employer offset some of their expenses. There are different types of health savings accounts all with their own benefits.  Which one works best is entirely up to the individual and their circumstances.

Some workers and employers are opting for the health Reimbursement arrangement. This arrangement makes it possible for employees to pay for medical expenses and keeps some of the costs down for employers. Anyone is eligible who works for an employer who provides this scheme.

The Health reimbursement arrangement covers those medical expenses that have not been reimbursed as described by the IRS. Generally those that are not covered on your standard health insurance policy.

Other types of health savings account offer a fair degree of flexibility. The Health reimbursement arrangement allows your employer to decide and set most of the rules. Your employer has the right to decide who can put funds into your account. They can also decide if you need a health insurance policy. The employer also has power to decide when you are eligible to use your account. They also decide whether or not you loose your money should you change jobs. The health reimbursement arrangement is tax free if you are the one making the contributions.

The health reimbursement arrangement is a good way to create a health savings account. However it does give you employer a lot of power over your account. Other types of accounts allow you to take the funds with you if you change jobs and allow for multiple entities to deposit money. However, your employer may set good conditions for you to make the health reimbursement scheme an attractive option.

With the rising cost of health care and health insurance, workers and employers are looking for ways to offset the expenses. Through the various health savings accounts both sides can realize financial benefits. The workers can have a better degree of control over their future medical expenses and the employers can offset some of their health insurance costs.