Which of the following statements is (are)true concerning high deductible health plans?
I.An employee can withdraw money tax-free from a health savings account or health reimbursement arrangement to pay covered medical costs.
II.There is a cap on an employee's out-of-pocket expenses under the plan.

Question

Quizplus · Accepted Answer

Both statements are true. High deductible health plans are paired with a health savings account (HSA) or health reimbursement arrangement (HRA) that allows employees to withdraw tax-free funds to pay for covered medical expenses. Additionally, there is a maximum limit on the amount that an employee will need to pay out of pocket for covered medical expenses under the plan.

Which of the Following Statements Is (Are)true Concerning High Deductible