A Flexible Benefits plan (FSA) is made up of two primary components: Premium Only Plans (POP) and Flexible Spending Accounts. POP allows employees to pay qualified insurance premiums on a pre-tax basis. Flexible Spending Accounts are pre-tax, employee-funded accounts.
A Health Savings Account (HSA) is a pre-tax savings plan where an employee and employer can deposit money (much like an Individual Retirement Account or IRA) to pay for current and future medical expenses, such as qualified types of medical insurance, deductible costs and co-insurance. It's unique because it offers triple tax benefits — contributions are tax free, withdrawals for qualified medical expenses are tax free and earnings are tax free.
A Health Reimbursement Arrangement (HRA) is an employer-funded account used to reimburse employees for qualified medical expenses such as insurance deductibles, coinsurance, co-payments, and prescription drugs. Both the employer contributions and employee reimbursements are tax-free.
The Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA, is a law that requires businesses with 20 or more employees to offer continued health benefits after an employee leaves their job or experiences another qualifying event.
Transportation Plans save employees money on qualified parking, transit, and vanpooling, with pretax dollars deducted from their paychecks.