Consumer Driven Health Plans for Groups
You can combine the benefits of a Blue Cross and Blue Shield of Nebraska high deductible health plan with the tax advantages of a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). Blue Cross and Blue Shield of Nebraska offers high deductible health plan options for groups as small as two employees.
Health Savings Accounts (HSA)
A Health Savings Account is an alternative to traditional health insurance. Paired with a qualified high deductible health plan, the HSA offers a different way for consumers to pay for their health care. HSAs enable employees to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. They were created to help give control back to consumers and lower healthcare costs.
The employee owns and controls the money in the HSA. Decisions on how to spend and/or invest the money are made by the HSA accountholder.
The employee must be covered by a high deductible health plan (HDHP) to be able to take advantage of an HSA. An HDHP generally costs less than what traditional health care coverage costs, so the money that is saved on a higher deductible plan can be put into the HSA.
Benefits of an HSA to an employee are:
- HSA contributions will be deducted from an employee’s paycheck before taxes are calculated, which reduces their taxable income.
- Interest earned on HSA money is not subject to income taxes — in other words, no income taxes are paid on the earnings generated by the HSA investments.
- Withdrawals for qualified health care expenses are tax-free.
- The money in the HSA is portable - - the employee owns the funds even if they change medical plans, leave the company or retire.
Learn more about HSAs from the U.S. Department of the Treasury.
Blue Cross and Blue Shield of Nebraska can help initiate the process of opening a HSA for each employee. Contact your broker for information on HSA-eligible health plan options.
Health Reimbursement Arrangements (HRA)
Combined with a high deductible health plan, a Health Reimbursement Arrangement (HRA) is funded by an employer to assist the employee in paying for health care expenses. Any unused balance at the end of the year may be rolled over to cover future expenses.
Health care benefits are costly and an HRA is an excellent tool to help an employer manage the rising costs of health care while still giving employees the coverage they need and deserve.
Contact your broker to find out more about offering your employees a Consumer-Driven Health Plan suitable for use in conjunction with an HRA.
Tools to Help Employees with Health Care Decisions
Informational and educational tools are available to help employees become better health care consumers. The more informed they are about health care spending, the better the plan works for them. The online tools and resources include:
- CoverageAdvisorSM helps determine which health plan best meets their needs
- Healthcare AdvisorSM helps employees better understand their treatment options to make an informed decision
- Treatment Cost AdvisorSM helps evaluate the cost of a condition or service
- A health risk assessment to help evaluate a person’s current health status and take action for improving their health
- Educational health and wellness information, self-help tools and discounts on many health care services through BlueHealth Advantage.
- Searchable provider directory to locate a physician near home or see if a physician participates in our network
- Pharmacy information and generic drug comparisons for savings on drugs
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