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May 16, 2023
Benefits 101: Comparing HSAs, HRAs and FSAs
Smart benefits choices are all about saving money and staying healthy, but selecting the right employee benefits can be a challenge. To help, this infographic compares three of the most popular health care savings options: health savings accounts (HSAs), health reimbursement arrangements (HRAs) and flexible spending accounts (FSAs).
|Who owns the account?||Employee||Employee||Employee|
|Who may fund the account?||Anyone can make contributions to an individual's HSA, including employer and employee contributions||Employer||Employer and/or employee|
|What plans must be offered with the account?||A high deductible health plan (HDHP) that satisfies minimum annual deductible and maximum annual out-of-pocket expense requirements.||An employer must offer a health plan, and the HRA must be considered integrated with group health plan coverage.||Most health FSAs must qualify as excepted benefits to satisfy ACA reforms. To qualify as an excepted benefit, the FSA must meet a maximum benefit requirement and other group health plan coverage must be offered by the employer.|
|Is there an annual contribution limit?||$3,850 Individual |
$7,750 Family (2023)
$7,300 Family (2022)
Catch-up contributions for those age 55 by the end of the tax year: $1,000/year
|No, there is no IRS-prescribed limit.||For plan years beginning in 2023, employees may not elect to contribute more than $3,050 ($2,850 for plan years beginning in 2022)|
|Can unused funds be rolled over from year to year?||Yes||Yes||No, with two exceptions: A health FSA may include a grace period of 2.5 months after the end of the plan year, or it may allow employees to carry over up to $500 (as adjusted for inflation) in unsued funds into the next plan year.|
|What expenses are eligible for reimbursement?||Section 213(d) medical expenses, including: |
*Health premiums while receiving unemployment benefits
*If Medicare-eligible due to age, health insurance premiums, except for medical supplement policies
|Sections 213(d) medical expenses. |
Cannot reimburse health insurance premiums for individual coverage.
Employer can define "eligible medical coverage"
|Sections 213(d) medical expenses.|
Expenses for insurance premiums are not reimbursable.
Employer can define "eligible medical expenses."
|Must claims be substantiated?||No||Yes||Yes|
|May the account reimburse nonmedical expenses?||Yes, but taxed as income and 20% penalty (no penalty if distributed after death, disability or age 65)||No||No|
|Does the uniform coverage rule apply?||No||No||Yes|
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