Can a Company Have Both HSA and HRA? Understanding Your Health Savings Options

When it comes to saving for healthcare expenses, understanding the different options available is crucial. One common question that arises is, can a company have both an HSA and HRA?

The short answer is yes, a company can offer both a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA) to its employees. However, there are some important considerations to keep in mind.

Here's a breakdown of HSA and HRA to help you understand how they work:

Health Savings Account (HSA)

• Employee-owned account
• Tax-deductible contributions
• Portable and stays with the employee
• Can be used for qualified medical expenses

Health Reimbursement Arrangement (HRA)

• Employer-funded account
• Reimburses employees for qualified medical expenses
• Employer has control over the account
• Unused funds may roll over year-to-year, depending on the plan

Having both an HSA and HRA can offer employees greater flexibility and coverage when it comes to healthcare expenses. Employees can benefit from the tax advantages of an HSA while also having the additional support of an HRA for certain expenses.

It's important for both employers and employees to carefully review the terms of each account and understand how they can be used together to maximize benefits.

When considering healthcare expenses, many employees wonder how they can best utilize their benefits. That's where the combination of a Health Savings Account (HSA) and a Health Reimbursement Arrangement (HRA) comes into play.