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Small Business Employee Benefits and HR Blog

HRA vs HSA vs FSA Comparison Chart

pie chart cartoon1 resized 600Comparison charts provide an excellent way of summarizing complex information. As a follow-up to yesterday's HRA case studies, check out this HRA, HSA, FSA comparison chart. It's a good summary of the key differences between the four primary types of health-care reimbursement accounts and arrangements.

What does HRA, HSA, FSA, PRA Stand for?

HRA = Health Reimbursement Arrangement (for the purposes of this blog, we will be examining the Small Business HRA)

HSA = Health Savings Account

FSA = Flexible Spending Account

HRA, HSA, and FSA Feature Comparison

 

 

HRA

HSA

FSA

Who may Contribute Employer Only Employer or
Employee
Employee or Employer
Cost of Employer Contributions Only pay for Utilization (typically 25-50%) 100% Paid
regardless of Utilization
n/a
Average Cost to Cover $2,000/year Deductible $500-1,000 $2,000 $2,000
Maximum Annual Contribution $4,950 (single)
$10,000 (family) for 2017
$3,400 (single)
$6,750 (family) for 2017
Determined by Employer; Capped at $2,600, including employee contributions, in 2017
Eligibility Requirements Must have minimum essential coverage to receive reimbursements tax-free Must have HSA-qualified health coverage None or Determined by Employer
Each Employee must open new Bank Account? No Yes No
Tax Treatment Tax-free Tax-free Tax-free
Medical Expenses Allowed Health Insurance Premiums + IRC 213(d) IRC 213(d) Expenses w/ No Employer Limitations IRC 213(d) Expenses;
but no Personal Health Insurance
Use for Non-Medical Expenses None None None
Carryover of
Unused Funds to Next Year
No Yes No
Portable after Termination No Yes No
Administrator Employer or TPA Employee Employer or TPA
Cross-Compatibility With HSA* or FSA Limited-Purpose or Post-Deductible FSA or HRA With HRA or HSA*

Employer Reporting

Employer Views Detailed Utilization Reports No Tracking Possible Employer Views Detailed Utilization Reports

*HSAs are fully compatible only with certain HRA and FSA administration platforms that enable HSA-Compatibility .

Learn the differences between HSAs, HRAs, and FSAs

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