| |
Health
Savings Account
(HSA) |
HRA
Health Reimbursement Account
(HRA) |
Flexible Spending Account
(FSA) |
| Account Ownership |
Employee/ Individual |
Employer |
Employer (held in employee's name) |
| Deposits made by |
Employer, employee or both |
Employer |
Employer, employee or both |
| Separate account |
Required; IRA-type account |
Not required; can be paid from employer assets |
Not required; can be paid from employer assets |
| Expenses covered |
Medical, dental, vision expenses, COBRA or retiree medical insurance premiums, LTC premiums or expenses
|
Medical, dental, vision expenses or insurance premiums, LTC premiums
|
Medical, dental, vision expenses |
| Accompanying plan requirements |
HSA qualified high deductible plan; 2005: at least $1,000 self-only, $2,000 family, and not be covered by any plan that covers medical expenses under the deductible
|
No |
No |
| Maximum annual contribution |
2005: $2,650 self-only, $5,250 family, not to exceed deductible |
None |
None |
| Maximum calendar year contribution |
1/12 of the maximum annual contribution times the number of months eligible for the calendar year |
None |
None |
| Portability |
Full portability required
|
Portability allowed at employer's discretion |
None |
| Roll-over |
Full roll-over required |
Roll-over allowed at employer's discretion |
None |
| Funds Availability |
As deposits are credited |
As deposits are credited; may be credited in a lump sum |
Full annual election available on first day of coverage (uniform coverage) |
| Claim Adjudication |
Not allowed; though participants must retain receipts |
Required |
Required |
| Compatibility with other savings accounts |
May be paired with HRA/ FSA if limited to amounts over deductible, or to dental/ vision only |
May be paired with FSA |
May be paired with HRA |
| Employer contributions |
Can be made on behalf of current employees (account extends to spouse and dependents if family medical coverage) |
Can be made on behalf of current, former employees, their spouses and dependents, and spouses and dependents of deceased employees |
Can be made on behalf of current employees (account extends to spouse and dependents) |
| ERISA plan |
Generally no |
Yes |
Yes |
| COBRA |
Does not apply |
Applies |
Applies |
| Retirees |
Can be covered |
Can be covered |
Can not be covered |
| healthcare payment card Usage |
Yes |
Yes for active employees only |
Yes for active employees only |
| Contributions for Medicare eligible participants |
Contributions can not be made once an individual becomes eligible for Medicare |
No limits on contributions |
No limits on contributions |
| Qualified medical expenses |
Generally, those defined in section 213(d) not covered elsewhere |
Generally, those defined in section 213(d) not covered elsewhere |
Generally, those defined in section 213(d) not covered elsewhere |
| Distributions for non-medical expenses |
Can be made |
Can not be made |
Can not be made |
| Usage for ineligible expenses |
Allowed. Amounts included in income; subject to 10% penalty unless after account beneficiary's death, disability or attaining age 65
|
Not allowed; entire plan may be disqualified |
Not allowed; entire plan may be disqualified |
| Distributions for expenses incurred after individual is no longer eligible |
Can be made |
Can be made at employer's discretion, or if COBRA is elected |
Can be made if COBRA is elected |
| Coverage for sole proprietors, partners and 2% or more S-corp owners |
Yes, but not eligible to participate in cafeteria plan used to fund HSA in the workplace |
Can not be covered |
Can not be covered |
