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HSA HRA Comparison

Comparison of HRA/HSA/FSA

 

Health
Savings Account
(HSA)
HRA Health Reimbursement Arrangement
(HRA)
Flexible Spending Account
(FSA)
Account Ownership
Employee/ Individual
Employer
Employer (held in employee’s name)
Deposits made by
Employer, employee or both
Employer
Employer, employee or both
Separate account
Required; IRA-type account
Not required; can be paid from employer assets
Not required; can be paid from employer assets
Expenses covered
Medical, dental, vision expenses, COBRA or retiree medical insurance premiums, LTC premiums or expenses
Medical, dental, vision expenses or insurance premiums, LTC premiums
Medical, dental, vision expenses
Accompanying plan requirements
2013: $1,250 self-only, $2,500 family
No
Maximum annual contribution
2012: $3,100 self-only, $6,250 family
2013: $3,250 self-only, $6,450 family
None
None
Portability
Full portability required
Portability allowed at employer’s discretion
None
Roll-over
Full roll-over required
Roll-over allowed at employer’s discretion
None
Funds Availability
As deposits are credited
As deposits are credited; may be credited in a lump sum
Full annual election available on first day of coverage (uniform coverage)
Claim Adjudication
Not allowed; though participants must retain receipts
Required
Required
Compatibility with other savings accounts
May be paired with HRA/ FSA if limited to amounts over deductible, or to dental/ vision only
May be paired with FSA
May be paired with HRA
Employer contributions
Can be made on behalf of current employees (account extends to spouse and dependents if family medical coverage)
Can be made on behalf of current, former employees, their spouses and dependents, and spouses and dependents of deceased employees
Can be made on behalf of current employees (account extends to spouse and dependents)
ERISA plan
Generally no
Yes
Yes
COBRA
Does not apply
Applies
Applies
Retirees
Can be covered
Can be covered
Can not be covered
healthcare payment card Usage
Yes
Yes for active employees only
Yes for active employees only
Contributions for Medicare eligible participants
Contributions can not be made once an individual becomes eligible for Medicare
No limits on contributions
No limits on contributions
Qualified medical expenses
Generally, those defined in section 213(d) not covered elsewhere
Generally, those defined in section 213(d) not covered elsewhere
Generally, those defined in section 213(d) not covered elsewhere
Distributions for non-medical expenses
Can be made
Can not be made
Can not be made
Usage for ineligible expenses
Allowed. Amounts included in income; subject to 10% penalty unless after account beneficiary’s death, disability or attaining age 65
Not allowed; entire plan may be disqualified
Not allowed; entire plan may be disqualified
Distributions for expenses incurred after individual is no longer eligible
Can be made
Can be made at employer’s discretion, or if COBRA is elected
Can be made if COBRA is elected
Coverage for sole proprietors, partners and 2% or more S-corp owners
Yes, but not eligible to participate in cafeteria plan used to fund HSA in the workplace
Can not be covered
Can not be covered





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