Broker Check

Consumer-Driven Health Plans

Consumer-driven health plans give employers and employees more control over healthcare costs. AFG implements HSA (Health Savings Account) and HRA (Health Reimbursement Agreement) plans to help our clients provide for their employees' health expenses using the most advanced insurance and tax preferred products available for consumer-driven healthcare programs.

Health Savings Accounts (HSA)

​An HSA is a tax-exempt account established to pay qualified medical expenses for the account holders who participate in high-deductible health plans. AFG assists clients in establishing HSAs as a component of their overall benefit program.

Contributions can be made by the employee, employer, or a third party and may be rolled over for future use for qualified expenses. Non-health related withdrawals are permitted but may be subject to penalties and taxes.

Total annual contributions are subject to federal guidelines and active plan participation. Employee contributions are tax deductible. Employer contributions are excluded for gross income and exempt for FICA calculations.

Health Reimbursement Agreements (HRA)

​HRAs are employer-funded accounts that are combined with high-deductible health plans that reimburse employees for qualified medical care expenses. AFG has extensive working knowledge of the HRA program and helps clients understand the purpose and benefits of an HRA as a consumer-driven healthcare option.

The employer is the sole contributor to the HRA and sets annual funding limits.

Contributions may be rolled over for future qualified expenses and accounts may be interest bearing at the discretion of the employer.