1 / 1

Unraveling the Mystery HSA and HRA – Decoding the Difference

Understanding the differences between HSA and HRA is essential for selecting the right option that aligns with your business goals.

Tarek16
Download Presentation

Unraveling the Mystery HSA and HRA – Decoding the Difference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unraveling the Mystery: HSA and Unraveling the Mystery: HSA and HRA – Decoding the Difference! HRA – Decoding the Difference! Health Savings Account (HSA) and Health Reimbursement Arrangement (HRA) Explained: 01 PURPOSE AND OWNERSHIP: HSA: Individual savings account for qualified medical expenses. HRA: Employer-funded account to reimburse employee medical expenses. 02 FUNDING: HSA: Contributions by individual and/or employer, tax-deductible, rollover. HRA: Employer contributions, not tax- deductible, limited rollover. 03 PORTABILITY: HSA: Portable, even with job changes or insurance plans. HRA: Generally not portable; funds tied to the employer. 04 ELIGIBLE EXPENSES: HSA: Broad range of qualified medical expenses, some restrictions. HRA: Employer-customized expenses for reimbursement. 05 ACCOUNT OWNERSHIP AND VESTING: HSA: Owned by individual, stays with them. HRA: Owned by employer, not usually portable. HSA Example: Sarah Contributed to HSA via payroll and personal contributions. Used HSA for deductible, surgery costs, and follow-ups. Funds rolled over annually, portable, flexible control. HRA Example: John Employer-funded HRA for eligible medical expenses. Reimbursed for specialist visit per company guidelines. No direct ownership, not portable upon job change. Opening an HSA: General Steps Verify eligibility (HDHP requirement). Research HSA providers (banks, credit unions, online). Gather personal and HDHP details. Complete application (online, phone, or in person). Fund your account (individual and/or employer contributions). Designate beneficiary (optional). Review HSA rules and regulations. Start using your HSA for eligible expenses. 8. 1. 2. 3. 4. 5. 6. 7. Notable HSA Providers: 1. 2. 3. 4. 5. 6. Optum Bank Fidelity HealthEquity HSA Bank ConnectYourCare Further www.getsmartquotes.com

More Related