All of the Following Statements Are Accurate Regarding Health Reimbursement

question 52

Multiple Choice

All of the following statements are accurate regarding health reimbursement accounts EXCEPT:

• A) employees can have both an HRA and HSA.
• B) the employee cannot contribute money towards the HRA.
• C) HRAs are tax deductible to the employer.
• D) when an employee retires they can still access the money to pay for medical expenses.
• E) when used in combination with a HDHP health care costs are more controlled.

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Definitions:

Component Percentages

A financial analysis tool that expresses each line item on a financial statement as a percentage of a base figure, allowing for comparability.

Time-Series Analysis

A statistical method that analyzes a sequence of data points, typically measured at successive times, to forecast future trends.

Product Differentiation

A marketing strategy where a company attempts to make its product appear unique from competitors' offerings in the eyes of consumers.

Customer Service

Activities and services provided by a company to support and enhance the satisfaction of its customers.