Alternative Health Insurance Funding Options
In Northeast Ohio, COSE has several alternative health care funding options for small businesses, including Health Savings Accounts, Flexible Spending Accounts, and Health Reimbursement Arrangements. These are all tax-advantaged ways to save health insurance premiums while limiting exposure and realizing tax relief for both you and your employees.
Simply put, they’re bank accounts that provide employees with unprecedented control over their earned health care dollars. They can spend it, or save it - but most important, employees will soon realize the true cost of health care and become more informed health care consumers.
Some alternative health care funding options are funded with tax-free employer funds; others use employee dollars. Employers can choose whether or not to contribute, adding additional benefits and flexibility.
Consider Your Alternative Health Insurance Funding Options
HSAs combine a qualified high-deductible health plan with a tax-advantaged savings account, allowing employees to save and pay for routine medical expenses with pre-tax dollars. Employees own their account and unused dollars roll over year after year.
FSAs are also referred to as Section 125 plans (the name refers to the section of the Internal Revenue Code), cafeteria plans, or flexible benefits plans. These plans allow employees to save by paying for health insurance premiums, out-of-pocket medical expenses, and child/dependent care expenses with pre-tax dollars. The company saves by paying lower matching Social Security and Medicare contributions. However, all dollars placed in the account will be lost if not spent by the end of each year.
HRAs are employer funded accounts that provide reimbursement for specific employee and dependent medical expenses. Employees lose unused dollars when they switch employers.
See traditional cose health insurance plans
COSE is your complete small business benefits partner.
For more information on COSE Health Insurance call