HSA vs HRA vs FSA Comparison Chart

//HSA vs HRA vs FSA Comparison Chart
HSA vs HRA vs FSA Comparison Chart 2017-12-05T12:02:29+00:00

HSA vs HRA vs FSA Comparison Chart

  Health Savings
Account (HSA)
Health Reimbursement
Arrangement (HRA)
Flexible Spending
Account (FSA)
Account Owned By Employee/ Individual Employer (held in employee’s name) Employer (held in employee’s name)
Contributions Made By Employer, employee or both Employer Employer, employee or both
Separate Bank Account for Each Employee Yes; IRA-type account No No
Expenses Covered Medical, dental, vision, prescription and some over-the-counter expenses. COBRA, retiree medical insurance premiums, LTC premiums or expense – Reference: IRS Publication 502 Medical, dental, vision, prescription and some over-the-counter expenses. Post-tax insurance premiums. – Reference: IRS Publication 502 Medical, dental, vision, prescription and some over-the-counter expenses – Reference: IRS Publication 502
Eligibility Requirements Must have HSA-qualified health coverage Must have minimum essential coverage to receive reimbursements tax-free None
Maximum Annual Contribution 2018: $3,450 (single), $6,900 (family), Catch-up $1,000 2018: $5,050 (single), $10,250 (family) Determined by Employer; Capped at $2,650, including employee contributions, in 2018
Average Cost to Cover $2,000/year Deductible $2,000 $500-1,000 $2,000
Money Can Be Invested Yes No No
Portable after Termination Full portability required Portability allowed at employer’s discretion None
Rollover Full rollover required Rollover allowed at employer’s discretion $500 rollover allowed at employer’s discretion
Funds Availability As deposits are credited As deposits are credited; may be credited in a lump sum Full annual election available on first day of coverage (uniform coverage)
Claim Adjudication Not allowed; though participants must retain receipts Required Required
Compatibility with Other Savings Accounts May be paired with HRA/ FSA if limited to amounts over deductible, or to dental/ vision only; may be paired with DCAP, PRA May be paired with FSA, DCAP, PRA. If paired with an HSA, must be limited to amounts over the deductible or to dental/vision only May be paired with HRA, DCAP, PRA. If paired with an HSA, must be limited to amounts over the deductible or to dental/vision only
Employer Contributions Can be made on behalf of current employees (account extends to spouse and dependents) Can be made on behalf of current, former employees, their spouses and dependents, and spouses and dependents of deceased employees Can be made on behalf of current employees (account extends to spouse and dependents)
ERISA Plan Generally no Yes Yes
COBRA Does not apply Applies Applies
Retirees Can be covered Can be covered Cannot be covered
Debit Card Available Yes Yes Yes
Contributions for Medicare Participants Contributions cannot be made once an individual has Medicare coverage No limits on contributions No limits on contributions
Usage for Ineligible Expenses Allowed. Amounts included in income; subject to 20% penalty unless after account beneficiary’s death, disability or attaining age 65 Not allowed Not allowed
Coverage for Sole Proprietors, Partners and 2% or More S-corp Owners You can’t make a pre-tax contribution to an HSA. However, you can make contributions with your after-tax dollars. Cannot be covered Cannot be covered