Employee Control

Cost awareness

In the old days, after we went to the doctor or hospital, our health insurer paid the bill. Because we didn’t feel much financial pain, there was no incentive for us to shop around for the best deal.

That has changed. 

Health care prices are more transparent. You can find out what an X-ray will cost at hospitals and imaging centers near you. And because employees now share more costs with employers, we’re all more conscious about how much we’re paying.  

Health funds are one way for employees to manage their costs – and for employers to save money.

Health Savings Account (HSA)*

An Aetna HealthFund^® Health Savings Account* works like a bank account. Employees can use the money to pay for qualified medical expenses.

Advantages for you:

• You lower your federal taxes. 
• You save on state taxes.**
• You reduce FICA and federal unemployment tax liability.

Advantages for employees:

• Account deposits are tax deductible.
• Withdrawals are tax free -- as long as they use the funds for qualified medical expenses.
• They can roll over any amount to the next year. 
• If they change jobs, they can carry the balance to a new employer.

Read more about health savings accounts

*HSAs are currently not available to HMO members in California and Illinois.

**Alabama, California, New Jersey and Wisconsin don't recognize pre-tax contributions to the HSA at the state level.

Aetna HealthFund^® Health Reimbursement Arrangement (HRA)*

This is a fund you establish for employees. They can use money to cover qualified health care costs. 

Advantages for you:

• You can deduct your employees’ medical expenses as a business expense.
• You can choose to permit or limit the rollover of unused funds.
• Because you determine the contribution amount, you can better manage your health care budget for the year.

Advantages for employees:

• Their reimbursements are tax free for qualified medical expenses.
• If you choose, they can roll over any money they don’t use. This helps them save for unexpected medical expenses.

Explore health reimbursement arrangements

*HRAs are currently not available to HMO members in Illinois and Small Group members in Florida.

Retirement Reimbursement Arrangement 

An Aetna HealthFund^® Retirement Reimbursement Arrangement is a fund you set up for employees to help them manage their health expenses in retirement. For retirees, this fund helps them better budget their finances. 

Learn more about retirement reimbursement arrangements

Flexible Spending Account 

A flexible spending account (FSA) allows employees to contribute a portion of their salary before taxes. Depending on the type of FSA, they can use the funds for eligible health care expenses, dependent care expenses, or even some work-related parking and transit costs.

Advantages for you:

• You lower your taxes, including FICA tax liability.

Advantages for employees:

• Employees pay for eligible expenses with pre-tax dollars. 
• It’s easy and convenient, with several automatic reimbursement options. 

Learn more about flexible spending accounts

Read about automatic reimbursement options

Health Expense Accounts at a Glance

Here is a side-by-side comparison of the various health expense accounts available.