CONSUMER DIRECTED HEALTH CARE

 

 
   

"While others promise. . .       We perform"

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      Consumer Directed Health Care

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Choosing PRM to Design and Administer your Consumer Directed Health Care Benefits Package brings you ...
Control
Plan features and benefit packages
Hands on approach to managing your health care costs
Flexibility
Multiple plan designs to meet your needs
Maximize the effectiveness of your benefit dollars
Benefit from product combinations
Knowledge
Educate employees to become better health care consumers
Learn what options your really have available when it comes to health care

 
Consumer Directed Health Care Explained:
Section 125 Flexible Spending Account (FSA)
Premium Only Plan (POP)

Employees save by paying insurance premium with pre-tax dollars
Cash Opt-Out Plan 

Employees offered cash if they elect not to participate in company health plan
Health FSA 
Provides reimbursement of medical expenses on a tax free basis
Funded by pre-tax employee contributions and/or tax deductible employer contributions
Maximum contribution is determined by employer
Funds do not roll over year to year
Unused funds transfer back to employer and my be used according to IRS guidelines
Dependent Care FSA
Provides reimburesement of dependent care expenses on a tax free basis
Similar rules as Health FSA
Health Reimbursement Arrangement (HRA)
Funded by employer only
Reimbursements are 100% tax deductible for the employer
Pre-funding the HRA is not required, the balance can be virtual
Any size business may participate
Self-employed individuals, partnerships, shareholders who own more than 2% stock in Sub S corporation and members of a LLC are not eligible
Can be coupled with a High Deductible Health Coverage or offered on a stand alone basis
Design and flexibility are controlled by employer: maximum yearly contributions, roll over features, retirement savings, distribution options
Health Savings Account (HSA)
A federally approved tax free savings account that works like an IRA, except it is used to pay current and future qualified medical expenses
Owned by the employee, is portable, and rolls over year to year
Contributions are tax deductible with no need to itemize
Withdrawals are tax free if taken for a qualified expense
Requires a High Deductible Health Plan
Funded by employee and/or employer
Maximum annual contribution is equal to the high deductible amount and is not to exceed IRS limits established each year
Catch up contributions for individuals 55 and older