Wondering about the difference between HSAs, HRAs, and FSAs?
You’re not the only one who feels like there are too many acronyms and too little time.
HSAs, HRAs, and FSAs are accounts used to pay for qualified medical expenses, prescription drugs, dental and vision expenses.
Health Savings Account (HSA) – is a savings account to which you and your employer (if they choose) can contribute pre-tax dollars if you are enrolled in an eligible High Deductible Health Plan.
Health Reimbursement Account (HRA) – is an IRS-approved, employer-funded, tax-advantaged health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums.
Flexible Spending Account (FSA) – is a type of savings account set up by an employer for the employee, that allows the employee to contribute a portion of pre-tax earnings to pay for qualified medical expenses, generally with a lower limit than HSAs.
See a detailed comparison below:
We hope this comparison helped you understand the difference between HSAs, HRAs, and FSAs. Sign up for our newsletter for more free resources that make health benefits simple.