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Article: Retiree health care options expand; HSAs, HRAs can be used to as alternative to expensive traditional plans.(News)
- Article from:
- Business Insurance
- Article date:
- May 5, 2008
- Author:
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JERRY GEISEL
WASHINGTON-Features that make it attractive for employers to offer health savings accounts and health reimbursement arrangements to employees also make them appealing as retiree health care funding vehicles, an expert says.
For employers who contribute to HSAs or HRAs, the costs are predictable; for employees, there are tax breaks such as tax-free accumulation of earnings and tax-free distributions taken to pay for health care expenses.
While neither arrangement will provide all that is needed to cover health care expenses after retirement, HSAs and HRAs are among the most tax-effective vehicles to accumulate savings, said ...