Understanding HRA vs HSA: What You Need to Know

Health Reimbursement Arrangement (HRA) and Health Savings Account (HSA) are two common healthcare saving options available to individuals. Both aim to help you save money for medical expenses, but they have key differences that you should be aware of.

HRAs are employer-funded accounts that help employees cover qualified medical expenses. On the other hand, HSAs are individual accounts that you can contribute to on your own or through your employer.

One major difference between HRA and HSA is the ownership of the account. While HRAs are owned and funded by the employer, HSAs are owned by the individual, providing them with more control over the funds.

Another key difference is the portability of the funds. With an HSA, you can take the account with you if you change jobs or retire, allowing you to continue using the funds for medical expenses.

Health Reimbursement Arrangement (HRA) and Health Savings Account (HSA) serve distinct purposes in the realm of healthcare savings. While HRAs are exclusively employer-funded, HSAs allow individuals the flexibility to contribute funds themselves, fostering personal responsibility for healthcare expenses.