Find the right HFA for your company
With funding arrangements such as Health Reimbursement Arrangements (HRA), Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA), you get more back: lower premiums, tax-free or tax-deductible contributions, and more flexibility in benefits design. You also provide your employees with tax savings, the ability to offset out-of-pocket expenses and more control.
Want to learn more about the differences between the three types of health funding arrangements? Take a look at the chart below.
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Health Reimbursement Arrangement (HRA)
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Flexible Spending Account (FSA)
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Health Savings Account (HSA)
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Account Holder
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Employer
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Employer
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Individual (Employee)
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Eligibility
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Individual must work for an employer that offers one.
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Individual must work for an employer that offers one.
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Individual must be enrolled in an HSA-qualified medical plan.
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Funding
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Employer only
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Employee, through pre-tax salary payroll reduction, the amount of which is determined by employee. Employers can contribute.
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Individual and/or employer and certain others.
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Portability
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Cannot be rolled over to a new employer.
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Cannot be rolled over to a new employer.
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The employee takes it when leaving employment. After age 65, the individual may use the funds for non-medical expenses.
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Fund Carryover from year to year
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Optional (determined by employer)
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Funds not used by the end of the plan year or grace period, if applicable, are forfeited to employer.
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Funds carry over year to year.
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CDPHP Plan Compatibility
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EPO, PPO, HDEPO, HDPPO
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Any
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HDEPO, HDPPO
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Qualified Expenses
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Determined by employer. Can include: copayments, deductibles, vision care, dental care, prescriptions, COBRA health premiums, and other IRS-qualified medical expenses
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Employer may offer a: Health FSA for all IRS-qualified medical expenses and/or Dependent Care FSA for child or adult day care
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All IRS-qualified medical expenses
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Debit Card
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Available
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Available, except for Dependent Care FSA
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Available
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