Which Health Insurance is Primary: HSA or HRA?

When it comes to health insurance, understanding the differences between an HSA (Health Savings Account) and an HRA (Health Reimbursement Arrangement) is crucial in determining which one is primary. Both HSA and HRA offer benefits that can help you manage your healthcare costs, but they work in slightly different ways.

Here’s a breakdown of the key points:

• HSA:
• Requires a high deductible health plan (HDHP).
• Contributions are tax-deductible.
• Offers triple tax benefits (tax-deductible contributions, tax-deferred growth, tax-free withdrawals for qualified medical expenses).
• Owned by the individual, portable, and can be invested for long-term growth.
• HRA:
• Can be offered alongside any type of health plan.
• Employer-funded and owned.
• Reimbursements are tax-free for qualified medical expenses.
• May have carryover options determined by the employer.

So, which one is primary when it comes to health insurance coverage?

In general, when you have both an HSA and an HRA, the HSA is typically considered the primary health insurance. This is because the HSA is individually owned and controlled by the account holder, providing more flexibility and portability compared to an employer-funded HRA.

However, every situation is unique, and it’s essential to consult with your employer or insurance provider to understand the specifics of your coverage.




Understanding the distinctions between HSA (Health Savings Account) and HRA (Health Reimbursement Arrangement) is essential for anyone navigating health insurance. Both options provide effective ways to manage healthcare costs, but their structures and purposes differ significantly.