Other Health Expense Plans
Horizon BCBSNJ offers three types of health expense plans:
- Health Savings Accounts (HSAs)
- Health Reimbursement Accounts (HRAs)
- Flexible Spending Accounts (FSAs)
Health expense plans like HSAs, HRAs and FSAs are authorized by the IRS and let you and/or your employer set aside money before taxes are withheld. With these plans, you submit a claim for certain eligible health- or care-related expenses incurred throughout the year, and you’re then reimbursed with tax-free dollars from your account. The advantage of these accounts is that federal income and Social Security taxes on this money are avoided before it goes into your account, and you don't owe taxes on it when it is paid out to you.
Health Reimbursement Accounts and Health Savings Accounts work in combination with a qualified High-Deductible Health Plan (HDHP) that has a lower premium. Each account features tax-advantaged dollars that you can use to pay for qualified medical expenses, such as deductibles, coinsurance amounts and some other out-of-pocket expenses.
Visit the IRS website for a current list of eligible medical expenses, and be sure to check with the person in charge of health benefits at your company to find out which of the expenses your employer has chosen.
For more details, download our HSA & HRA Comparison Chart PDF.
A Premium Only Plan lets employees use pretax dollars to pay for their portion of a health insurance premium. It is similar to health expense plans, but does not include the advantage of paying for unreimbursed health expenses and dependent care expenses on a pre-tax basis.