Several options exist for employers to provide accounts that employees can use to pay for health care expenses not otherwise covered by a health plan; the options vary as to tax treatment, who can contribute, and what expenses can be covered.

There are three types of health spending accounts that can be used to help fund employee health care expenses: flexible spending accounts, health savings accounts (aka, health spending accounts), and health reimbursement arrangements. A description of each type of health spending accounts follow. (more…)