Health Savings Account (HSA)
Health Reimbursement Arrangement (HRA)
Medical Flexible Spending Account (FSA)
| Feature | HSA | HRA | FSA |
|---|---|---|---|
| Account Funding | Account held by bank or insurance company in individual’s name. Timing of funding is determined by employee and / or employer, typically evenly over the year. | Determined by HRA account administrator, typically funded only when claims are presented for reimbursement. | Typically funded evenly over the year through payroll deductions. |
|
What can account funds be used for? • Health Insurance Premiums? • Long-term Care Coverage? • Non-medical expenses? |
Unreimbursed qualified medical expenses as defined by IRS Code 213(d). The list is broad and typically includes all health plan services subject to deductibles & coinsurance, in addition
to items such as dental work, eyeglasses, and many OTC medications. • Yes, when on unemployment, COBRA, or age 65 Or over and insurance is NOT a Medicare Supplement. • Yes • Yes, but subject to tax and a 10% penalty (penalty waived if over age 65 or over, disabled, or died during year) |
At the employers discretion, the account can be used for all IRS Code 213 (d) services, or be limited. Generally used only to cover health plan costs subject to the deductible and / or coinsurance. • Yes, at employers discretion. • Yes, at employers discretion. • No |
Same as HSA. • No • No • No |
| What is tax treatment of account contributions? | Not subject to taxes | Not subject to taxes | Not subject to taxes |
| Can the Individual have other health insurance coverage? | No, except for policies with very limited benefits such as dental, vision, specific diseases. | No restrictions. | No restrictions. |
| Who can have an account? | Individuals covered by a High Deductible Health Plan (HDHP). | An employee whose employer offers an HRA. | An employee whose employer offers an FSA. |
| What are the requirements of the corresponding health plan? | HDHP where all services (including RX) are subject to deductible and coinsurance with the exception of Preventive Care. | No Health Plan requirements. HRAs can be used with any plan or as a stand-alone account. | No Health Plan requirements. |
| Minimum Deductible (In Network) |
$1,200 Individual $2,400 Family | No Minimums. | Not Applicable. |
| Out-of-Pocket Maximum (In Network) |
$5,950 Individual $11,900 Family | No Maximums. | Not Applicable. |
| Who may contribute to the account? | The account holder, employer, or any other person. | Employer | The employee or employer. Typically funded by the employee only. |
| What are the annual contribution limits? |
$3,050 Individual $6,150 Family Age 55 & over may make additional catch up contributions of $1,000. | No federal tax limits. Employers typically set a limit equal to or less than the plan deductible. | No federal tax limit. Employers typically set a limit. |
| Are accounts portable? | Yes | No | No |
| Can account funds be rolled over to the next year? | Yes | Generally, yes, but this is at the employer’s discretion. | No, but employers may allow a grace period of 2 ½ months after year end to pay incurred expenses. |
| Does interest accrue on the account? | Yes | Generally, no, but this is at the employer’s discretion. | No |