Services and Solutions

HSA/HRA/FSA Summary Chart

  Health Savings Account(HSA) Heath Reimbursement Account(HRA) Flexible Savings Account(FSA)
Description Approved by Congress in 2003, they are actual bank accounts in employees’ names that allow employees to save and pay for medical expenses tax-free. Provides more control for the employer who may setthe contribution level, determine services to be covered, and retain control over unused funds. Allows employees to pay out-of-pocket expenses for copays, deductibles and certain services not covered by medical plan, tax-free.Only option that allows employees to pay for dependent care tax-free.
Employer Eligibility Employee with a qualified high deductible health plan. All employers All employers
Contribution Source Employee and/or employer Employer only Employee or employer but not both
Account Owner Individual Employer Individual
Underlying Insurance Requirement High deductible health plan None None
Minimum Deductible $ 1,110 single(2008)
$ 2,200 family(2008)		 No limits N/A
Maximum Contribution $ 2,900 single(2008)
$ 5,800 family(2008)		 Typically set by employer Typically set by employer
Permissible Use Of Funds Employees may use funds any way they wish. If used for non-qualified medical expenses, subject to current tax rate plus 10% penalty. Reimbursement for qualified medical expenses
(as defined by tax code).		 Reimbursement for qualified medical expenses
(as defined by tax code).
Cash-Outs of Unused Amounts (if no medical expenses) Permitted, but subject to current tax rate plus 10% penalty (penalty waived after age 65). Not permitted Not permitted
Year-to-year rollover of account balance? Yes, may roll over to use for subsequent year’s health coverage. imited
(Taxable beyond a defined amount.)		 No.
Use it or lose it.
Does the account earn interest? Yes No No
Portable? HSA owned by individual: portable year-to-year and between jobs. Limited:Ex-employee may have access at employer’s discretion. Employee forfeits balance at end of year and upon termination.

This comparison is intended as a summary only. Please see plan document for complete explanation and IRS limitations.