Defined Contribution Health Plans
One form of health plan design that has become very popular
is consumer-driven health care, including defined-contribution health
plans intended to make employees more conscious of, and responsible
for, the cost of their health care.
Typically, defined-contribution plans combine a high-deductible
plan with a tax-exempt medical expense savings account that could
cover the deductible, copayments, or the cost of out-of-network care.
Health savings accounts (HSAs) and health reimbursement
arrangements (HRAs) are the most common types of tax-favored consumer-directed
plans. HSAs must be combined with a high-deductible health plan (HDHP),
and HRAs frequently are as well.
Summary for [Your State]