Health Spending Accounts

Traditionally, people receive health insurance coverage through their employers at a group rate. When people are offered jobs, they are often concerned with salary and benefits, and want to know what sort of dental, medical, and vision plans they may be able to sign up for. However, there are methods of providing and paying for healthcare outside of work-related group plans.

If you have questions about health insurance, we can help. Contact the California health insurance agents at Catherine Michaels Insurance Services by calling 888-875-9888 today to speak with an experienced agent. We are here to help you make the best decision regarding healthcare and get the coverage you need at a price that fits your budget.

Types of Spending Accounts

Apart from traditional group-rate methods, employees can get healthcare coverage through various spending accounts. These types of accounts are:

• Flexible spending accounts: also referred to as “cafeteria plans” or “125 plans”, employees add a designated amount of their salaries to the fund and can use the money for health costs as they arise. The contributions are not taxed.

• Medical savings accounts: the employee or employer can add money to the account to cover unreimbursed heath expenses. Funds can also earn interest, like an IRA.

• Health reimbursement arrangements: these accounts pay back employees for medical expenses. Employers typically add money to the accounts to reimburse employees like an insurance plan would.

All three of these types of accounts can help you pay for medical expenses, so talk with your employer about which one he or she plans on using or which options are available to you.

Contact Us

We are here to help answer any questions you may have about healthcare insurance and coverage. For more information, contact the California health insurance agents at Catherine Michaels Insurance Services by calling 888-875-9888 today.