What is HSA/HRA? - Understanding Health Savings Accounts and Health Reimbursement Arrangements

Health Savings Accounts (HSA) and Health Reimbursement Arrangements (HRA) are healthcare benefit options that can help individuals save money on medical expenses. While both allow for tax advantages, they have key differences that are important to understand.

An HSA is a savings account that you can contribute to tax-free, and the funds can be used for qualified medical expenses. It is available to individuals with high-deductible health plans.

On the other hand, an HRA is an employer-funded account that reimburses employees for eligible medical expenses. Employees do not contribute to an HRA; instead, it is solely funded by the employer.

Both HSAs and HRAs can help individuals cover healthcare costs, but they have different features and eligibility requirements. It's essential to consider your healthcare needs and determine which option is best for you.

Health Savings Accounts (HSA) and Health Reimbursement Arrangements (HRA) are powerful tools available to help individuals manage healthcare costs. An HSA allows you to set aside pre-tax money that can grow tax-free and be used for qualified medical expenses. This option is particularly beneficial for those with high-deductible health plans, enhancing your ability to pay for unexpected medical bills.