HSA, FSA & HRA

Deciding on what plan option to make available to your employees can be confusing. Such as what does a HSA do, how about an FSA or HRA. It takes an experienced employee benefit advisor to explain your options and design a plan that is right for you, your business, and your employees.

HSA Accounts

With a tax-exempt savings account coupled with a qualified high-deductible health plan, you can cover certain medical expenses. Funds are deposited and not taxed as well as withdrawals which are not taxed.

The benefits of a HSA:

  • Money goes in tax-free
  • Money comes out tax-free
  • Earns interest, tax-free
  • HSA balance can be carried over year after year
  • HSA balances can be invested
  • HSA can be used to add to your retirement funds.

FSA Accounts

A Flexible Savings Account pay for medical and dental expenses not paid for by insurance, usually deductibles, co-payments, and co-insurance for employee’s health plans. They also cover over-the-counter medications when purchased with a doctor’s prescription. Unlike an HSA, contributions are funded through salary deferrals and you do get tax benefits because FSA’s reduce your taxable wages when funded with pre-tax money.

Benefits of a FSA:

  • Covers out-of-pocket medical expenses
  • Covers dependent child care expenses
  • Covers adoption expenses

If you are health, a FSA might not be worth it since you must spend the designated amount during the year or you will lose it.

HRA Accounts

Health Reimbursement Programs are employer-funded, tax-advantaged personalized health benefits that reimburse an employee for out-of-pocket medical expenses and individual health insurance premiums.

Benefits of a HRA:

  • Reimburses qualified medical expenses not covered by employer plan.
  • Fixed amount that can be rolled over each year
  • Can be paired with a FSA Account
  • Over-the-counter medications

Not sure what plan is right for you, give us a call at Hyland Insurance to discuss your options.