Health Savings Accounts and Health Reimbursement Arrangements

The table below is an overview of the main features of Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). The FEHB website has more information on Health Savings Accounts and Health Reimbursement Arrangements.

Health Savings Account

Health Reimbursement Arrangement

Who is eligible?

Employees enrolled in a High Deductible Health Plan (HDHP) who are not enrolled in another health insurance plan, and who can’t be claimed as a dependent on someone else’s tax return.

Employees enrolled in a High Deductible Health Plan (HDHP) who are not enrolled in another health insurance plan, and who can’t be claimed as a dependent on someone else’s tax return.

What kind of account is used?

A bank account in your name, set up by the health plan.

A reimbursement arrangement, with records kept by the health plan.

Who funds the HSA or HRA?

The health plan deposits part of your premium into an HSA.

The health plan sets aside part of your premium to reimburse you for qualified medical expenses. Some plans set aside the entire amount at the beginning of the year and others fund it month by month.

Who owns the money?

Employee

Health Plan

Does the balance carry over from year to year?

Yes

Yes, as long as you remain in the health plan

What happens to the funds when I leave the company?

Employees continues to own the account but may pay fees to transfer or maintain it.

If you terminate employment, you forfeit the balance.

Can I contribute to the account?

Yes, up to IRS limits.

No.

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