A traditional plan generally pays a percentage of the charges for covered medical expenses only after members satisfy a plan deductible or copayment. With a spending account, preventive care and wellness services received in network are paid in full before the deductible is met.
You can choose to set aside a specific amount of money for your employees each benefit year in a Health Care Account, and/or your employees can establish a Health Savings Account, which can be funded by the employer, the employee or both. These account funds pay for other covered health care expenses that are also applied to the deductible. Your employees pay the remaining deductible amount and then PPO benefits begin. Unused funds roll over year-to-year, as long as the employee remains in the plan. If the employee leaves the plan, funds return to the employer. HSA funds roll over year to year and are portable and remain with the employee even if he/she leaves the plan.