Although similar, Health Reimbursement Arrangements (HRAs) and Health Savings
Accounts (HSAs) have key differences:
| |
HRA |
HSA |
| Health plan benefit design |
No specific requirements |
Federally mandated minimum deductibles/maximum
out-of-pocket |
| Other health coverage |
No limitations |
Only other qualified health plans allowed |
| Eligible medical expenses |
Unreimbursed Code 213 medical expenses, including premiums for health &
long-term care insurance |
Unreimbursed Code 213 medical expenses,
excluding health insurance premiums except: COBRA premiums; health insurance
premiums while unemployed; retiree health insurance |
| Account earnings taxable to participants
|
Not applicable
|
Tax-exempt |
| Portability |
Portability allowed but not required |
Fully portable |
| Carryover of unused amounts |
Permitted but not required |
Full carryover |
| Covered medical expense |
Ability to limit to the medical plan only |
Covers all 213 medical expenses |
| Pretax funding |
Employer only |
Employer and/or employee |
| Account type |
Notational only |
Qualified trust |
| Cash-outs of unused amounts |
Not permitted |
Permitted but taxable. 10% penalties also apply to under 65
non-disabled |
| Contribution limits |
No limits |
Lesser of deductible amount or
$2,650 individual, $5,250 family |
| Third-party claims administration |
Required |
Not required |