HSA, HRA, or FSA, What's the Difference?
All health care accounts are not created equal. That's why you need an experienced, trusted adviser to help you when it comes to your health care finances. HealthEquity is here to help you understand the sometimes complex and confusing world of health care account acronyms (
HSA,
HRA,
FSA, MSA, VEBA). Here's a chart to help compare three of the more common types of accounts:
| |
Health Savings Accounts (HSA) |
Flexible Spending Accounts (FSA) |
Health Reimbursement Arrangements (HRA) |
Tax-Advantaged (Contributions Reduce Annual Tax Expenses) |
Yes |
Yes |
No |
Earns Interest |
Yes |
No |
No |
Owned by Account Holder |
Yes |
No |
No |
Owned by Employer |
No |
Yes |
Yes |
Account Holder Can Contribute |
Yes |
Yes |
No |
Employer Can Contribute |
Yes |
No |
Yes |
Annual Contribution Limit |
Yes $3,050 for individuals (2011) $3,100 (2012)
$6,150 for families (2011)
$6,250 (2012)
|
No $2,500 starting in 2013 $5,000 for dependent-care FSAs |
Yes Determined by employer |
Unused Balances Roll Over Annually |
Yes |
No |
No |
Stays with Account Holder if Retires or Changes Jobs |
Yes |
No |
No |
Used for Retirement Income |
Yes (taxed as income) |
No |
No |
Opened by Account Holder or Employer |
Yes |
No |
No |
Opened Only by Employer |
No |
Yes |
Yes |
Can Reduce Account Holder’s Insurance Premiums |
Yes |
No |
No |
Can Reduce Account Holder’ Out-of-Pocket Health Care Expenses |
Yes |
Yes |
Yes |
Can Reduce Employer’s Insurance Premiums |
Yes |
No |
No |
Can Contribute to Decreased Utilization by Turning Employees into Smarter Health Care Consumers |
Yes |
No |
No |
Can Reduce Employer’s Health Care Expenses |
Yes |
No |
No |