Asked by Simply Eleni on Jul 07, 2024
Verified
Frankie is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Frankie make a decision?
A) With managed care, the insurer makes all decisions about health care so Frankie has no control.
B) Money in flexible spending accounts is not taxed, so employees get more take-home pay.
C) The money in the flexible spending accounts must meet IRS requirements.
D) At the end of each year, money remaining in a flexible spending account reverts to the employer.
E) Contributions to a flexible spending account may not exceed $5,000 per year.
Flexible Spending Account
A pre-tax benefit account used by employees to pay for eligible healthcare expenses, reducing their taxable income.
Managed Care
A healthcare delivery system aimed at managing cost, quality, and utilization of services by contracting with specific providers and implementing guidelines for treatment.
IRS Requirements
The legal and regulatory stipulations established by the Internal Revenue Service that individuals and organizations must follow.
- Examine the merits and disadvantages of assorted healthcare policies.
Verified Answer
KB
kandie balletdaireJul 10, 2024
Final Answer :
B
Explanation :
Money in flexible spending accounts is not taxed, so employees get more take-home pay. This is a clear advantage over managed care which does not offer this benefit.
Learning Objectives
- Examine the merits and disadvantages of assorted healthcare policies.