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 Consumer-Directed
Health Care (CDHC)
At Group Insurance Management Services, we have the knowledge,
resources, and experience to work with you in determining if your
business if ready for the implementation of these type of plans and
arrangements under your employee benefits program. We have
developed this comprehensive online resource for your benefit. 
Contact us
if you want to know more about our CDHC services!
LEARN
MORE Links
Consumer-directed
health care is the name given to a handful of
strategies – some innovative, some recycled – that
seek to marshal the power of consumers making cost-conscious choices to
constrain rising U.S. health care spending. The leading edge
of the consumer-directed movement is a new generation of tax-advantaged
accounts known as health savings accounts (HSAs) that are linked to
high-deductible health plans (HDHPs).
| Consumer-Directed Health
Arrangements |
CDHP
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Employer Tips on Implementing a HDHP/HSA
- By
engaging and empowering employees, high-deductible health plans with
HSAs can help make both employee accountability for health care
spending—and the potential to control costs—very
real.
CDHP
- Consumer-Directed Health Plans Tutorial - In this narrated slide
tutorial, Gary Claxton, Vice
President
of the Kaiser Family Foundation, discusses the principles and different
models of CDHC, such as Health Savings Accounts (HSAs). The tutorial
also discusses financing and impact on health care spending and major
policy issues for consideration. 24 minutes
What
You Need to
Know About HSAs, HRAs, FSAs, and MSAs - In today’s
health care market, employers and consumers are
looking for lower-cost health coverage, more control over their health
care dollars, and broad choice among doctors and hospitals. Consumer
health spending accounts are one of many product options that respond
to these needs.
The major types of health care spending accounts are:
All of these products have federal tax advantages, and they allow
consumers to save
money for health care. Each has a different design and is subject to a
unique set of
federal rules. This guide answers frequently asked questions about
account-based
health care products.
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FSA
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FSA
- Flexible Spending
- An FSA allows employees to have money deducted tax-free from their
paychecks for qualified out-of-pocket medical expenses (and child care
expenses, if the employer so wishes). Most types of medical, dental and
vision expenses are reimbursable, but not the employee’s
portion
of health insurance premiums. The employee must decide before the year
begins how much money will be deducted over the next 12 months. Any
money left over at the end of that period reverts to the employer.
* IRS
Publication 969 - FSA
* IRS
Publication 502 Medical and Dental Expenses
* IRS
Publication 503 Child and Dependent Care Expenses
* IRS
Proposed Dependent Care Regulation 05/24/06
* Section
125 Explanation
* Section
125 Regulation
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HRA
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HRA
-
Health Reimbursement Arrangement -
An HRA is similar to an HSA, but only employers – not
employees
– contribute to the plan. Funds in an HRA are available to
reimburse employees for qualified medical expenses. As with an HSA, the
account is usually paired with a high-deductible health plan. Once the
employee’s deductible is reached, normal coverage begins. Any
unused funds are rolled over at the end of the year, but remain with
the employer and do not follow the employee if he or she changes jobs.
There is no statutory limit on annual contributions, but employers
typically set limits at or below the amount of the plan deductible.
* Treasury
and IRS Issue Guidance on Health Reimbursement
* IRS
Publication 969- HRA
* IRS
Publication 502 Medical and Dental Expenses
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HSA
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HSA -
Health Savings Account -
An HSA is a type of health insurance offering that combines a
tax-preferred savings account with a high-deductible health insurance
plan. The goal of an HSA is to provide affordable coverage while making
employees more cost conscious in their use of health services. Any
employer can offer an HSA, and both employers and employees can
contribute to it. A self-employed or unemployed person can set up his
or her own plan. Employees must pay for all services until the amount
of the deductible is reached (a minimum of $1,100 for an individual and
$2,200 for family coverage in 2007). Employees can withdraw money from
an HSA to cover the cost of services until the deductible amount is
reached. Then normal coverage begins. Any unused funds are rolled over
at the end of the year. If the employee changes jobs, he or she can
take the HSA to the next employer.
* Public
Law 109-432 Tax Relief and Health Care Act of 2006 Summary, Dec 2007
* Department
of Treasury HSA Reference
* Comparison
of FSA, HRA, HSA
* Answering
Your Questions About HSA's
* IRS
Publication 969- HSA
* IRS
Publication 502 Medical and Dental Expenses
* IRS
Field Assistance Bulletin 2006-02
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