Preferred Plus Accounts – Consumer Driven Healthcare

Today’s health insurance environment is filled with many emerging initiatives that add a new level of complexity to the already complex health care delivery system. New terms such as High Deductible Health Plan (HDHP), Health Savings Account (HSA), Health Reimbursement Arrangement (HRA) and Flexible Spending Accounts (FSA) are mentioned in many health care insurance discussions and news articles. Each of these arrangements plays a potential role in the design and delivery of benefits through Consumer Driven Health Plans.

Click here to see a comparison of FSA, HSA and HRA.

A Consumer Driven Health Plan is a health plan designed to promote the involvement of the consumer at a much higher level than ever before. Each of these arrangements provides favorable tax treatment under the Internal Revenue. While these accounts are similar each has unique features.

An FSA allows pre-tax money to be set aside via payroll deductions to pay for health care or dependent care expenses not covered by a benefit plan. An HSA is a new generation of tax-deferred accounts, similar to an Individual Retirement Account (IRA) for medical expenses not otherwise covered by the health plan. These are individually owned and can be carried from job to job. The HRA is established by an employer and is utilized to encourage cost conscious use of medical services and supplies.

Blue Cross and Blue Shield of Alabama offer Preferred Plus Accounts, which include: Preferred Health Savings Accounts, Preferred Health Reimbursement Accounts and Health Flex Accounts. These accounts may be tied to health plans with higher deductibles. Please remember to verify each member's benefits.