In one type of benefit plan, the employer makes defined contributions to each employee's "account," and the employee decides how to use these to cover health-related expenses. Which type of plan is this?

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This type of benefit plan is a health spending account (HSA). The employer contributes a certain amount of money to each employee's account, and the employee can decide how to use it to cover qualified medical expenses. It is a self-directed plan in that the employee has control over how the funds are used.

In One Type of Benefit Plan, the Employer Makes Defined