Mitchell's employer offers a program, not attached to an insurance plan, which allows employees to save pre-tax dollars to cover certain medical costs. What type of program is this?

Question

Quizplus · Accepted Answer

Mitchell's employer offers a program that allows employees to save pre-tax dollars to cover certain medical costs. This is most likely a flexible spending account (FSA). FSAs are not attached to insurance plans and allow employees to set aside pre-tax dollars to pay for eligible medical expenses. Medicaid and Medicare are government-sponsored programs, whereas a health savings account (HSA) requires a high-deductible health plan (HDHP).

Mitchell's Employer Offers a Program, Not Attached to an Insurance