With the high price of health care today, employers and employees alike are seeking out ways to control costs without compromising their care. When you combine your Regence medical product with one of our CDH programs, you're maximizing savings potential and encouraging smart consumerism. These programs allow you to balance the desire to offer coverage with the need to curb costs.

You choose the program that makes the most sense for your employees and your business. We—along with our partner, HealthEquity^™—provide the support, education and resources that you and your employees need to maximize savings and wellness. In the end, employees have more control over how they save and spend their health care dollars. Employees are empowered to make smarter lifestyle choices. And that doesn't just keep them healthier—it makes them better health care consumers.

CDH programs from Regence

We offer a variety of CDH programs designed to save you and your employees money through healthier living.

Health Savings Account (HSA): employee-owned accounts allow your employees to save and invest their health care dollars on a triple tax-advantaged basis—saving federal, state, and Social Security taxes.

Health Reimbursement Arrangement (HRA): fund an account that your employees can use to pay for deductibles, coinsurance, copays and other qualified medical expenses not covered under their medical plan.

Health Care Flexible Account (HCFSA): allows employees to set aside funds on a pre-tax basis to pay for eligible medical expenses.

Limited Health Care Flexible Spending Account (LHFSA): reimburses employees for dental, vision and preventive care up until the time they meet their annual HSA deductible.

Dependent Care Flexible Spending Account (DCFSA): allows employees to deduct pre-tax funds from their paychecks for various dependent care expenses.

Commute Reimbursement Account (CREA): gives employees the ability to deduct pre-tax funds from their paychecks for eligible work-related transportation and parking expenses.

CDH program comparison

	Health Reimbursement Arrangements (HRAs)	Health Savings Accounts (HSAs)	Health Care Flexible Spending Accounts (FSAs)
Overview	An employer-funded account that reimburses employees for qualified medical expenses, typically combined with a high-deductible health plan.	A tax-exempt, employee-owned account created exclusively to pay for the qualified medical expenses of the account-holder and his or her spouse or dependents.	FSA is a tax-favored account to pay for qualified medical expenses not covered by insurance or other reimbursements.
Benefits for employer	Provides a mechanism for self-insuring a portion of the medical plan, potentially lowering the total cost of medical benefits. Tax savings	Lowers cost – Through lower utilization and tax savings Focus on wellness – Preventative first dollar coverage option Flexibility – Gives employees the opportunity to determine where their healthcare dollars are used.	Tax savings Provides a mechanism to expand employee's benefits
Who is eligible to establish an account?	Any employee whose employer offers an HRA.	Any employee or spouse who is covered by a qualified high-deductible health plan and does not have other health coverage	Any employee whose employer offers an FSA (including Medicare enrollees)
Who is ineligable to establish an account?	Sole proprietors, S-Corp, LLC, LLP, partnership owners and spouses.	Employees enrolled in other health coverage, Medicare-eligible (cannot fund HSA) sole proprietors, partnership owners.	S-Corp, LLC, LLP, partnership owners and spouses. sole proprietors
Who can contribute?	Employer	Employer, employee or anyone else.	Employee
What are the requirements for the corresponding health plan?	None	Employee must participate in a qualified high-deductible health plan.	None
Does the balance carry over?	Yes. Unused amounts in an HRA may be carried over, subject to any limits set by the employer.	Yes. HSA funds may be carried over indefinitely during a participant's lifetime. Upon a participant's death, an HSA may be passed on to a surviving spouse without federal tax liability.	No. Unused FSA balances are forfeited at the end of the plan year.
Is the account portable?	No. However, employers can set up HRAs so that they continue to reimburse former employees or retirees for medical care after termination or retirement.	Yes. Employees may take funds with them when they leave or change jobs.	No. Unused FSA balances are forfeited if the employee leaves or changes jobs.
Does interest accrue on the funds deposited in the account?	No	Yes. Interest accrues tax free.	No
What are the tax advantages?	Employer contributions are generally excludable from employee's gross income. Employers receive expense deductions for payments.	Employee and employer contributions are excludable from gross income and not subject to employment taxes (e.g., FICA).	Employees pay no federal or Social Security taxes on FSA contributions. Employers pay no FICA tax, federal or state unemployment taxes on FSA contributions.
Who owns the contribution?	Employer	Employee	Employer
What are the limits on contributions?	No limits under federal income tax law. Employers typically set limits, usually equal to or less than the amount of the deductible of employees' health plan.	Limits for 2010 – $3,050 for self-only coverage. – $6,150 for family coverage.	No limits under federal income tax law for FSAs set up to pay for qualified medical expenses or health insurance premiums; employers typically set limits.
Funds can be used for?	Any Qualified Medical Expense (defined in IRS Code section 213d) that employer chooses to include in a predefined list	– Long-term care – Medicare premiums – Any Qualified Medical Expense (defined in IRS Code section 213d) – Funds used for non-qualified expenses are subject to penalties and back taxes	Any Qualified Medical Expense (defined in IRS Code section 213d)

Partners for better health

To promote our full spectrum of consumer-directed health programs, Regence has partnered with HealthEquity™. Together, we provide the support, education and resources your employees need to maximize savings and wellness.

Learn more

Please call your Regence sales executive or agent today to learn how a Regence CDH program can save you and your employees money.