Healthcare savings account is medical and retirement planning savings account that can be used on a tax-advantaged basis. HSAs were created in Medicare Modernization legislation passed in December 2003. HRA (healthcare reimbursement account) is an account maintained by an employer to be used to reimburse employees for qualified medical expenses.

You can have both types of accounts, but only under certain circumstances. General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA.

HDHP/HSA or HRA provides insurance coverage and catastrophic coverage and a tax-advantaged way to help save for future medical expenses. It provides greater flexibility and discretion over how to use your health care dollars. quot;You can pay your deductible with funds from your HSA or HRA." Please explain this. How will we access the funds? If the access is not immediate, most physicians must have payment when services are rendered. The process is different between an HSA and HRA.

Typically an HSA only allows a Federal deduction, however in some states you can deduct the state tax. The HRA is a business expense which allows for a deduction from Federal, State, and FiCA taxes.

You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

According to IRS Rev Ruling 2004-45 an HSA can only be used with a Limited Purpose HRA, which reimburses for permitted insurance, vision, dental, and preventive care.

First, you must enroll in a High Deductible Health Plan. Depending on which HDHP you choose, the HDHP may send you an enrollment questionnaire. You must complete the questionnaire and return in to the plan. The plan will then set up the fund and contribute your deposits for each month you are enrolled. In some cases, plans may credit the full annual amount at the beginning of the year.

If you retire and remain in your health plan, you may continue to use and accumulate credits in your HRA. If you terminate employment or change health plans, only eligible expenses incurred while covered under that health plan will be eligible for reimbursement, subject to timely filing requirements. Unused credits are forfeited.

Your health plan will credit a portion of the health premium. The credit will be the same as the plan's HSA deposit for a Self Only or Self and Family enrollment.

You can not contribute any money to your HRA. Your HDHP will contribute a certain amount of premium into your HRA. This entire amount may be credited to the HRA at the beginning of the plan year, allowing for immediate access to funds. However, if you end your enrollment in your HDHP, you will not be entitled to the entire contribution. The amount will be prorated for the months you are enrolled in the plan.

A Health Savings Account (HSA) is an investment account from which you can draw money tax-free for medical care. HSAs are owned by the individual and grow through investments, similar to an IRA. HSAs have favorable tax treatment for contributions, distributions and earnings. They are available to individuals covered by a high deductible health plan (HDHP) and can be established to pay for family medical expenses.

You must wait 90 days before retaking the HRA. Meanwhile, you can review your feedback from your last Quality Health Survey by clicking on Feedback Report from the HRA homepage (accessed through Self Service). Please note that one can only earn the monetary incentive one time per calendar year. ^ TOP

Due to the rapidly changing regulatory environment regarding the HSA/MSA, and HRA market, My Medical Control cannot make a definitive statement regarding the service fees charged for saving you money or your medical claims.

Both provide tax benefits, but there are several differences. The most important difference is what happens to unused contributions, when the plan year ends ? and how contributions may be used. Unused HSA contributions can roll over from year to year. HSA balances continue to grow tax-deferred, can earn interest, and may be able to be invested in specific investment options. Money in a Flex account must be spent by the end of each year, does not earn interest, and cannot be invested. (close)

Generally, there are no set-up or administrative fees but you need to check with your individual plan for detailed information on possible costs.

Credits to your HRA are made through your HDHP's premium pass through. The money you receive for reimbursements of qualify medical expenses are free of federal, state, and FICA taxes.