Can my employees have an HRA with a plan that is not HSA?

When it comes to health benefits, employers have a range of options to offer their employees. One common question that arises is whether employees can have a Health Reimbursement Arrangement (HRA) with a plan that is not a Health Savings Account (HSA). Let's delve into this topic to gain a better understanding.

While HRAs and HSAs are both types of accounts that can help employees with healthcare expenses, they have some key differences:

• Health Reimbursement Arrangement (HRA): An employer-funded benefit that reimburses employees for out-of-pocket medical expenses.
• Health Savings Account (HSA): A tax-advantaged savings account that individuals can use to pay for qualified medical expenses.

Now, can employees have an HRA with a plan that is not an HSA? The answer is yes, it is possible for employees to have both an HRA and a non-HSA plan concurrently. However, there are certain considerations to keep in mind:

• Employers may offer an HRA alongside a traditional health insurance plan.
• Employees can use funds from the HRA to cover eligible medical expenses not covered by their primary health insurance plan.
• It's essential to ensure compliance with IRS regulations regarding the coordination of benefits between HRAs and other health plans.

Ultimately, providing employees with both an HRA and a non-HSA plan can offer more flexibility in managing healthcare costs. By understanding the distinctions between these benefit options, employers can make informed decisions that best suit the needs of their workforce.

Yes, employees can indeed have a Health Reimbursement Arrangement (HRA) with a plan that is not tied to a Health Savings Account (HSA). This relationship between HRAs and non-HSA plans offers employees greater flexibility and support for their healthcare costs.