Discuss the pros and cons of health savings accounts and flexible spending accounts

What will be an ideal response?


Answer: Health savings accounts can be set up by individuals or their employer as part of insurance coverage. They have a very high deductible. The money saved is tax free, and employers can contribute to the account. Because of the high deductible, this type of account is an unaffordable choice for many. A medical flexible spending account is offered through an employer and you do not need a particular type of insurance plan to have one. You must show receipts and get approval before you can withdraw money. One negative aspect of this account is that you must spend all of the money in the account each year or you will lose it.

Health & Biomechanics

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