MVP offers three spending account options that can be offered alongside health plans to give your employees the opportunity to save on qualified expenses. Learn the basics of each account including eligibility, tax benefits, and more.
Health Savings Accounts (HSA)
HSAs are personal, interest-bearing savings accounts that cover out-of-pocket medical, dental, and vision costs. Funds rollover from year to year and they are completely portable. Plus, contributions are tax-deductible, assets grow tax-free, and funds are not taxed when used for qualified medical expenses.
Flexible Spending Accounts (FSA)
FSAs integrate seamlessly with MVP’s health plans, making administration simpler for you and your employees. MVP offers four types of FSAs:
- Medical FSA: Uses pre-tax dollars to cover qualified out-of-pocket medical expenses.
- Limited Purpose FSA: Uses pre-tax dollars to cover qualified out-of-pocket dental and vision expenses. This type of account is typically paired with an HSA.
- Dependent Care FSA: Uses pre-tax dollars to cover daycare expenses.
- Parking and Transit FSA: Uses pre-tax dollars to cover work-related parking/transit expenses.
Health Reimbursement Arrangements (HRA)
HRAs are employer-owned and funded accounts that reimburse employees for qualified out-of-pocket medical expenses. MVP’s HRA offering can be setup three different ways:
- Member First: Pair with a health plan that has a member cost responsibility, which must be met before the HRA can be used.
- Employer First: HRA pays first dollar. Member may or may not have a responsibility after HRA funds are exhausted.
- Comprehensive: Can be structured with a member cost share as a percentage of each claim.
MVP also offers a Retiree HRA to help retired employees pay for plan-eligible medical expenses during retirement and a Wellness HRA to reward your employees for making healthy choices. Both HRAs can be customized to fit your needs.
Spending Account Options at a Glance
|Health Savings Account (HSA)||Health Reimbursement Arrangement (HRA)||Flexible Spending Account (FSA)|
|Eligibility||Individual must be enrolled in a qualified high-deductible health plan||Employer can purchase an HRA and offer it to employees; individuals cannot purchase an HRA||Employer can purchase an FSA and offer it to employees; individuals cannot purchase an FSA|
|Funding||Individual and/or employer||Employer only||Individual and/or employer|
|Tax Benefits||Funds can be deducted from a paycheck pre-tax and they are not taxed if used for qualified medical expenses||Funds will not be taxed if used for qualified items||Funds can be deducted from a paycheck pre-tax and they are not taxed if used for qualified expenses|
|Ownership||The funds belong to the individual permanently. If employment is terminated, the individual keeps the funds||The individual does not own the funds. If employment is terminated, the individual loses their funds||The individual does not own the funds. If employment is terminated, the individual loses their funds|
|Rollover Funds (Year to Year)||All funds rollover||Optional (determined by employer)||Depends on FSA type
|Plan Compatibility||Qualified high-deductible health plans||Any plan||Any plan|
|Qualified Expenses||All IRS-qualified medical expenses||Determined by employer (refer to IRS-qualified medical expenses)||Medical: All IRS-qualified medical expenses
Limited Purpose: Qualified dental and vision expenses
Dependent Care: Child or adult day care expenses
Parking & Transit: Work-related parking and transit expenses.
2022 & 2023 Spending Account Fees
Employer Group-Sponsored Plan Administrative Fees* (NY & VT) Small Group Large Group Administration Fee $2 per contract, per month (PCPM) Implementation Fee $150 $300
HRA and FSA
Employer Group-Sponsored Plan Administrative Fees* NY & VT Small Group NY Large Group VT Large Group Administration Fee $2.50 PCPM $4 PCPM $3 PCPM Implementation Fee $250 $350 SMM/SPD Fee $75 $100 Renewal Fee No charge; $500 late renewal fee Changes/Customized Programming/Corrections/Audit Requests $100 per hour Non-Discrimination Testing, available upon request $350 per test Debit Card Replacement Card No charge Dependent Debit Card (Dependents age 18 and over) No charge
*The COBRA implementation fee will be waived if another MVP diversified service (i.e. HSA, HRA, or FSA) has been purchased.