HSA / HRA
Sign up for an HSA by clicking one of the links below:
  
What is an HSA (Health Savings Account)?
An HSA is a tax-advantaged savings account tied to a high deductible health insurance plan. The savings account may be used to pay for deductibles, coinsurance and other qualified healthcare expenses (Section 213(d) of the Internal Revenue Code), on a tax-free basis. Unlike other types of health savings vehicles, HSA contributions and earnings carry over from year to year allowing you to build up your savings over time. If not used by age 65 you may also use the funds in your HSA to supplement your retirement income. Also, unlike most other employer sponsored savings plans, HSAs are portable and remain with you regardless of your employment status. You control your money.
Advantages of an HSA
Contributions to an HSA are tax deductible for individuals, the self-employed and employers. Withdrawals used to pay for qualified healthcare expenses are tax-free. HSA’s are the ONLY savings vehicle where the contributions are tax deductible and the withdrawals (if used correctly) are tax-free. Qualified HSA insurance plans generally cost less due to the high deductible regulations. In many HSA savings accounts you will also have the options to invest your money. Click here to sign up for an HSA.
How Do I Qualify for an HSA?
Most Americans qualify for HSAs. If you meet the following criteria, you qualify:
- You have a qualified high deductible health plan (our high deductible health plans qualify)
- You have no other health insurance (with a few exceptions: accident only, dread disease, etc.)
- You are not eligible for Medicare
- You cannot be claimed as a dependent on someone else's tax return
- You have gross income
A complete list of Qualified Medical Expenses For HSA and HRA:
QualifiedMedicalExpenses.pdf
What is an HRA (Health Reimbursement Account)?
An HRA is an arrangement under which an employer reimburses an employee for uninsured health or accident expenses incurred by the employee or his dependents. HRAs are treated as a standalone plan that is placed alongside a conventional health insurance plan to reimburse amounts not covered by insurance. HRAs are more flexible for employers than HSAs in several ways including contribution amounts, rollover limits, retiree benefits and the type of health plans that can be associated with an HRA.
How Does It Work?
- The employer decides to establish an HRA by setting up an HRA plan document that details covered expenses and sets the benefit parameters for the HRA. The employer may choose to couple this with a high deductible health plan.
- If the employer wants to allow the carry forward of dollar values, they decide on the percentage of remaining value or dollar amount to carry forward to future years.
- The employer can choose to self-administer the HRA, or outsource this to an independent administrator.
- The employer or administrator prepares and distributes educational material for the employees.
- At the time of service, employees present their health insurance ID card and pay any co-pay or out-of-pocket expenses as they would in a non-HRA environment.
- After an employee receives an Explanation of Benefits (EOB) for a covered expense from their health insurance carrier, the employee submits the documentation to the employer or administrator for HRA claim processing.
- The employer or administrator validates and processes the claim, and reimburses the employee for the eligible expenses, up to the annual maximum established by the employer.
Benefits to Employer
- No need for employer to pre-fund the account
- Employer determines timetable for making contributions
- Employer determines the amount of contribution and amount of rollover to the next year
- Employer determines what happens to unused funds when employee terminates
- HRAs enable employers to utilize tax deductible dollars to reimburse employees for qualified medical expenses
- No comparable contribution - Reimbursement for each employee does not have to be the same.
Benefits to Employee
- HRAs are solely funded by employers, and many surveys indicate that employees prefer HRAs over HSAs, as employer money is used to fund out-of-pocket expenses.
- HRAs are COBRA eligible benefits
- An HRA may cover both current employees and retirees, and their spouses and dependents.
For more information please call (203) 237-7900 or click here
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