MDG Associates of Connecticut, LLC Certified Insurance Consultants
MDG Associates of Connecticut, LLC Certified Insurance Consultants
MDG Associates of Connecticut, LLC Certified Insurance Consultants MDG Associates of Connecticut, LLC Certified Insurance Consultants
Navigation Links
Cobra
HIPAA
GASB
Consumer Driven Concepts
Medicare
Wellness


Client Login
User ID:
Password:
Click here to request
login credentials

Consumer Driven Concepts 2008
  FSA HRA HSA
IRS Code: 106 & 125 105, 106, 125 & 213 223
What is it? Flexible Spending Accounts may be offered with any type of health plan Health Reimbursement Arrangements may be offered with any type of health plan. Most commonly offered with a High Deductible medical plan Health Savings Accounts are tax-advantaged savings accounts that the account holder can use to pay out of pocket medical expenses. They are available only in conjunction with a High Deductible Health Plan (HDHP). HDHPs are defined as having $1,200 Individual and $2,400 Family Deductible and annual Out of Pocket expenses of $5,950 Individual and $11,900 Family
FAQs on HSAs
Who owns it? Employer owned - not portable Employer owns and typically not allowed to rollover to another employer Employee owned and completely portable
Who funds the account? Typically the employee, however the employer is allowed to contribute. Employee contributions are tax-free, while employer contributions are exludable for income and FICA tax purposes. The employer funds the account. Contributions are excludable for income and FICA tax purposes Employer and/or Employee. Employee contributions are tax-deductible up to $3,050 for Individual and $6,150 for Family coverage. Employer contributions are exludable for income and FICA tax purposes
Is there a "use it or lose it" rule? Yes, there is no carryover from year to year No, the employer determines whether to allow a carryover No, the individual owns the account regardless of whether the contributions are made by the individual or the employer
What are considered eligible expenses? Qualified medical, dental and vision expenses as defined under Section 213 of the IRS Code and selected over-the-counter drugs
FSA Worksheet 		Qualified medical, dental and vision expenses as defined under Section 213 of the IRS Code as well as Qualified Long Term Care services, and COBRA premiums if allowed in Plan Documents (determined by employer) Qualified medical, dental and vision expenses as defined under Section 213 of the IRS Code as well as Qualified Long Term Care services, and premiums. Ineligible expenses are subject to gross income tax and 10% penalty
HSA Worksheet
* Most FSAa and HRAs cannot be integrated with HSAs, except under very limited circumstances.
* HRAs and FSAs may be offered together. The employer has a choice to establish which account   must pay first. Since employee FSA funds are forfeited if not used, many employers allow   employees to use FSA funds first, however an employer may define the HRA fund for specific   medical care related to the high deductible, and the employee uses the FSA funds for the typical   out of pocket expenses not covered or reimbursable by the health plan or HRA.
* The above information is meant as an overview and should not be used as a legal guideline or advice.
MDG Associates of Connecticut, LLC
Home | About MDG | Resources | Carrier Links | Contact Us
© 2010 MDG Associates, Inc.