Employer-defined design. Contribution amounts and eligible expenses are determined by the employer.

Pay-as-you-go funding. No pre-funding required; claims are reimbursed only as expenses are incurred.

Flexible contribution structure. When integrated with a group health plan, there is no statutory maximum employer contribution limit.

Participant convenience. Plans may include a benefits debit card for streamlined reimbursement.

Tax advantages. Employer contributions are tax-deductible and reimbursements for qualified medical expenses are tax-free to employees.