This depends on your goals and objectives.  Some things you will want to consider are:

• Will the employer pay into this plan to ease the burden of a HDHP?
• Are funds portable or restricted to coverage while the participant is employed?
• Do we want the unused funds to be available in future years, possibly saved for retirement medical expenses?
• Is the goal to simply give the participant tax-free dollars or to restrict the use of these funds to help those that actually have medical expense in the current year?
• Do we want the use of employer contributions to this account to be restricted to specific expenses (i.e., deductibles only, deductibles and Rx only, etc.)?
• We want to move to a higher deductible health plan but not a qualified HDHP.  What are the advantages and disadvantages of the HRA and FSA options?  Do I need to offer both?  How can they be set up to compliment each other and still comply with regulations?

Tri-Star can assist you with some of these issues.  Please contact us for further assistance!