Page 5 - Waterjet Holdings- OE Guide 2015
P. 5
2015 Benefits Guide
Medical Plan Options
Key HRA and HSA Differences Note: if you
Our health plans are account-based health plans, which means you will use are over the age
of 55 or turn 55 during
dollars in a healthcare account to pay for some of your medical expenses. 2015, the IRS allows you
The two account choices are: to contribute an additional
$1,000 as a “catch-up” contribution
1. An HRA or Health Reimbursement Arrangement to your HSA account. When it
2. An HSA or Health Savings Account comes to paying your medical bills,
you decide whether you want to
Our plans give you more lexibility and accountability to determine when, use your accumulated HSA funds
where, and how to receive healthcare services and how to spend those or you can simply pay out of your
dollars. Both plans offer in-network and out-of-network beneits. pocket. If you use HSA funds to
meet coinsurance and deductible
Generally speaking, the HRA plan has:
obligations, no taxes will be applied.
z Lower deductibles and out-of-pocket maximums
z Higher monthly employee premiums Remember: an HSA account is
entirely yours. You keep whatever
z The opportunity to participate in the Healthcare FSA and Dependent is in the account, even if you leave
Care FSA program Waterjet Holdings, and the money
The HSA plan has: rolls over, year after year: There is
no “use it or lose it” rule.
z Higher deductibles and out-of-pocket maximums
z Signiicant tax advantages HRA Accounts Are
z Lower monthly employee premiums More Restrictive
z The opportunity to participate in the Dependent Care FSA plan only The HRA account does not
allow for voluntary contributions.
Once you satisfy any applicable deductibles and out-of-pocket maximums However, any accumulated funds
for the plan you choose, the plan will cover your expenses at 100% for the in the HRA account carry over year
remainder of the plan year. to year, just like the HSA account.
An HRA account is not portable.
HSAs Allows You to Save for Your Future If you are in the HRA and leave
An important distinguishing difference in the two plans is the HSA has a the company, any money in your
portable inancial savings account which offers signiicant tax advantages. account stays with the company.
An HSA account is a personal bank account you own. You build your
account with voluntary pretax payroll deductions up to the IRS limits for
2015 ($3,350 for single coverage, $6,650 for family coverage).
5
Medical Plan Options
Key HRA and HSA Differences Note: if you
Our health plans are account-based health plans, which means you will use are over the age
of 55 or turn 55 during
dollars in a healthcare account to pay for some of your medical expenses. 2015, the IRS allows you
The two account choices are: to contribute an additional
$1,000 as a “catch-up” contribution
1. An HRA or Health Reimbursement Arrangement to your HSA account. When it
2. An HSA or Health Savings Account comes to paying your medical bills,
you decide whether you want to
Our plans give you more lexibility and accountability to determine when, use your accumulated HSA funds
where, and how to receive healthcare services and how to spend those or you can simply pay out of your
dollars. Both plans offer in-network and out-of-network beneits. pocket. If you use HSA funds to
meet coinsurance and deductible
Generally speaking, the HRA plan has:
obligations, no taxes will be applied.
z Lower deductibles and out-of-pocket maximums
z Higher monthly employee premiums Remember: an HSA account is
entirely yours. You keep whatever
z The opportunity to participate in the Healthcare FSA and Dependent is in the account, even if you leave
Care FSA program Waterjet Holdings, and the money
The HSA plan has: rolls over, year after year: There is
no “use it or lose it” rule.
z Higher deductibles and out-of-pocket maximums
z Signiicant tax advantages HRA Accounts Are
z Lower monthly employee premiums More Restrictive
z The opportunity to participate in the Dependent Care FSA plan only The HRA account does not
allow for voluntary contributions.
Once you satisfy any applicable deductibles and out-of-pocket maximums However, any accumulated funds
for the plan you choose, the plan will cover your expenses at 100% for the in the HRA account carry over year
remainder of the plan year. to year, just like the HSA account.
An HRA account is not portable.
HSAs Allows You to Save for Your Future If you are in the HRA and leave
An important distinguishing difference in the two plans is the HSA has a the company, any money in your
portable inancial savings account which offers signiicant tax advantages. account stays with the company.
An HSA account is a personal bank account you own. You build your
account with voluntary pretax payroll deductions up to the IRS limits for
2015 ($3,350 for single coverage, $6,650 for family coverage).
5
