You and your employees can save on health care costs
As part of a consumer-directed health plan, health expense funds can help people to manage their health care costs. Your employees get cost-effective benefits and plans for themselves and their families. You get tax savings.
- HealthFund Health Reimbursement Arrangement (HRA)*
Use this fund to pay for eligible health care costs. Unused money can be rolled over for the next year’s plan.
- HealthFund Health Savings Account (HSA)**
You and/or your employees can contribute. Earnings and distributions for qualified medical expenses are tax-free.
- HealthFund Flexible Spending Account (FSA)
Lets employees put some of their pre-tax salary into a flexible spending account to reimburse themselves.
- Retirement Reimbursement Arrangement (RRA)
Available to employees eligible for retirement.
*HRAs are currently not available to HMO members in Illinois and Small Group members in Florida.
**HSAs are currently not available to HMO members in California and Illinois.
Don’t forget the tax benefits
As employees set aside pre-tax money and reduce their taxable income, you’ll pay less in payroll taxes. You can offer three ways to save:
Employees can pay for their portion of the group health insurance expenses on a pre-tax basis. As health care premiums change, employees’ elections can be adjusted.
Flexible spending account
This option lets you offer employees the ability to pay for a variety of health care and dependent care with pre-tax dollars. This includes items not paid in full or not covered by health insurance, such as over-the-counter drugs, eyeglasses, contact lenses, dental care, deductibles and coinsurance.
Transit reimbursement account
How nice is this? Commuters can use pre-tax dollars to pay transportation and parking expenses. They can set aside up to $110 per month for transportation and $215 per month for parking.
Benefits of tax savings
Lowering your payroll taxes provides many benefits to you, including:
- Reducing FICA, unemployment and workers’ compensation taxes
- Helping to recruit new employees by offering more spendable pay and less taxable income
- Providing your people with ongoing annual savings
- Enhancing the employee benefits package by allowing them to pay for other types of benefits and services with pre-tax dollars
- Giving your workers convenience by having funds available for health care expenses as they occur
You can get these savings for your business without a complicated set-up process. Let our dedicated and knowledgeable service representatives help.
Health benefits and health insurance plans are offered, underwritten and/or administered by Aetna Health Inc., Aetna Health of California Inc., Aetna Health Insurance Company of New York, Aetna Health Insurance Company and/or Aetna Life Insurance Company (Aetna). In Florida by Aetna Health Inc. and/or Aetna Life Insurance Company. In Maryland by Aetna Health Inc., 151 Farmington Avenue, Hartford, CT 06156. Each insurer has sole financial responsibility for its own products.
This material is for information only and is not an offer or invitation to contract. Providers are independent contractors and are not agents of Aetna. Provider participation may change without notice. Aetna does not provide care or guarantee access to health services. Aetna HealthFund HRAs are subject to employer-defined use and forfeiture rules and are unfunded liabilities of your employer. Fund balances are not vested benefits. Investment services are independently offered by the HSA Administrator. Information is believed to be accurate as of the production date; however, it is subject to change. Policy forms issued in OK include: HMO OK COC-5 09/07, HMO/OK GA-3 11/01, HMO OK POS RIDER 08/07, GR-23 and/or GR-29/GR-29N.