• Twitter
  • Facebook
  • Pinterest
  • Gplus
  • Youtube
  • Linkedin
CA Insurance License #0F22799 • 1(800) 617.0089
PolicyAdvantage.com
  • Home
  • About Us
  • Employers
  • Individuals & Families
  • Apply Online
    • COVID19 Special Page & Contact an Agent
  • Contact
  • Blog
  • Global
    • Gate A: North America
    • Gate B: Europe
  • Search
  • Menu
Blog
You are here: Home / Blog / Benefits Chalk Talk / Benefits Chalk Talk: What are the differences between a Health Savings...

Benefits Chalk Talk: What are the differences between a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA)?

February 11, 2013/in Benefits Chalk Talk, Employer Info, Health Reimbursement Arrangements (HRAs) /by PolicyAdvantage

Welcome back to another post in our series called “Benefits Chalk Talk.” This series is designed to help people and employers better understand all of the tools that are available when funding their healthcare. Our biggest goal is to help our clients and potential clients put the things in place that make the most sense.

This post will help you make comparisons between two very important concepts: Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs). The reason these two are so important is because they are “money smart” concepts that can help you retain funds. When utilized correctly and with the proper guidance, they can help you save premium dollars that would normally go to the insurance companies. 

Here are some important comparisons between an HSA and HRA. We’ll show them as questions, so they’re easier to understand:

Can I get a general overview of both an HSA and HRA? What exactly are they?

  • Health Savings Account: HSAs are accounts that are created at financial institutions (usually banks). It is established in an employee’s or individual’s name. An HSA helps someone save and pay for medical expenses tax-free. The account is owned by the individual. Participation in an HSA requires enrollment in a high deductible health plan (HDHP). 
  • Health Reimbursement Arrangement: HRAs are the funding option that gives the employer the most control. The employer determines what services are covered, the amount they want to give each employee, and retains control over unused funds.

Who can make contributions to an HSA and HRA? 

  • Health Savings Account: An employer can contribute to an HSA. The employee/individual can also directly contribute to an HSA. Further, an employee can re-direct salary to an HSA account. 
  • Health Reimbursement Arrangement: The employer is the only one that can contribute to an HRA. An employee may not contribute to an HRA in any way.

Who owns an HSA and HRA account? 

  • Health Savings Account: The individual/employee owns the account.
  • Health Reimbursement Arrangement: The employer owns the arrangement/account.

Who has responsibilities during claims when they pertain to HSAs and HRAs?

  • Health Savings Account: Only the employee is responsible for maintaining supporting claims records. The employer does not need to be involved. 
  • Health Reimbursement Arrangement: This is an ERISA plan. The employer (or HRA administrator) must substantiate claim expenses.

How involved do I have to be as an employer?

  • Health Savings Account: There is no employer involvement required in administration or compliance. Although, the employer may contribute and allow for payroll deferral (either after-tax, or through Section 125).
  • Health Reimbursement Arrangement: This is an ERISA plan, where compliance is required (proper reporting documents and administration).

Do my funds rollover year-after-year? 

  • Health Savings Account: Yes. Funds in a Health Savings Account will rollover year-after-year. There is a maximum yearly contribution that is adjusted at times. The account goes with the individual/employee if they leave or change jobs. 
  • Health Reimbursement Arrangement: Employers generally allow some rollover for future years’ use. However, money does not go with the employee, if the employee changes jobs.

The above questions should give you a basic understanding about the differences between an HSA and HRA. There are additional details about planning strategies when using HSAs and HRAs. Each business and individual is unique, so please contact us anytime to get further information about what types of insurance plans may fit your situation best when working with a Health Savings Account or Health Reimbursement Arrangement. These are both very valuable tools. 

Thanks for stopping by. Check back at our blog to get further information about funding healthcare. Also, please share with your friends, clients, colleagues, and family. Here are a few of our other information outlets:

Home Page: http://policyadvantage.com

Twitter: http://www.twitter.com/policyadvantage

Facebook: http://www.facebook.com/policyadvantage

YouTube: http://www.youtube.com/policyadvantage

Pinterest: http://www.pinterest.com/policyadvantage

Word Press (you are here): http://www.policyadvantage.wordpress.com

Tags: Consumer Directed Healthcare, Consumer Driven Healthcare, Employee Benefits, Group Benefits, Health Reimbursement Arrangement, Health Savings Account, High Deductible Health Plan, HRA, HSA, Policy Advantage, Policy Advantage Insurance Services, Tyson J. Lester, Tyson Lester
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Pinterest
  • Share on Linkedin
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
http://policyadvantage.com/wp-content/uploads/2020/03/Policy-logo-png-1-300x130.png 0 0 PolicyAdvantage http://policyadvantage.com/wp-content/uploads/2020/03/Policy-logo-png-1-300x130.png PolicyAdvantage2013-02-11 09:25:202013-02-11 09:25:20Benefits Chalk Talk: What are the differences between a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA)?
You might also like
Insurance Alphabet: Letter B
Policy Advantage Insurance Services: How We Can Help
International, Travel, and Expat Health Insurance
Department of Labor: Insurance Exchange Notice to Employees
Benefits Chalk Talk: Premium Only Plan (POP)
Essentials: The "Need-to-Knows" About the New Individual Health Insurance Marketplace
Health Insurance Exchanges: "Under 35" Crowd, Jump On-Board
Insurance Brokerage Explained: An "Insurance Store"

Recent Posts

  • Generic Viagra Strips: The Wonder Drug for Men
  • PolicyAdvantage.com: Now Officially Property & Casualty Licensed in the State of California
  • PolicyAdvantage.com: Online California eResources
  • ACA & COVID 19: Boston College “Squared Away Blog” Interviews President of PolicyAdvantage.com Tyson Lester
  • The Great Global Lion Debate: Who’s Your Favorite Lion Ever?

Recent Comments

    Archives

    • May 2022
    • February 2022
    • October 2021
    • August 2021
    • June 2021
    • July 2020
    • May 2020
    • April 2020
    • October 2019
    • September 2019
    • February 2019
    • October 2018
    • September 2018
    • May 2018
    • November 2016
    • October 2016
    • July 2016
    • May 2016
    • May 2015
    • August 2014
    • July 2014
    • June 2014
    • May 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
    • December 2013
    • November 2013
    • October 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
    • December 2012
    • November 2012
    • October 2012
    • September 2012

    Categories

    • #Advantage
    • Benefits Chalk Talk
    • Defined Contribution Health Planning
    • Employer Info
    • General Benefits Info
    • Health Reimbursement Arrangements (HRAs)
    • Healthcare Reform
    • Individual Health Insurance
    • Insurance Alphabet
    • Medicaid
    • PAIS Information
    • Phrases Made Easy
    • Political Elections
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Interesting links

    Here are some interesting links for you! Enjoy your stay :)

    Pages

    • About Us
    • Apply Online
    • Blog
    • Contact
    • COVID19 Special Page & Contact an Agent
    • Employers
    • Gate A: North America
    • Global
    • Home
    • Individuals & Families
    • Gate B: Europe

    Categories

    • #Advantage
    • Benefits Chalk Talk
    • Defined Contribution Health Planning
    • Employer Info
    • General Benefits Info
    • Health Reimbursement Arrangements (HRAs)
    • Healthcare Reform
    • Individual Health Insurance
    • Insurance Alphabet
    • Medicaid
    • PAIS Information
    • Phrases Made Easy
    • Political Elections
    • Uncategorized

    Archive

    • May 2022
    • February 2022
    • October 2021
    • August 2021
    • June 2021
    • July 2020
    • May 2020
    • April 2020
    • October 2019
    • September 2019
    • February 2019
    • October 2018
    • September 2018
    • May 2018
    • November 2016
    • October 2016
    • July 2016
    • May 2016
    • May 2015
    • August 2014
    • July 2014
    • June 2014
    • May 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
    • December 2013
    • November 2013
    • October 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
    • December 2012
    • November 2012
    • October 2012
    • September 2012
    © Copyright - Policy Advantage Insurance Services, All Rights Reserved - Enfold WordPress Theme by Kriesi
    Phrases Made Easy: “Consumer Directed Healthcare” Your Health Benefits Toolbox
    Scroll to top