02 Jul Employee Benefits Guide: HSA, HRA, and FSA

About The Author

Drew Thirion- Commercial and Benefits Risk Advisor 

As a Commercial and Benefits Risk Advisor, Drew specializes in sales and client service, generating new business opportunities while ensuring tailored solutions to each client’s unique employee benefits needs and requirements. 

Employee benefits are extremely valuable, especially when they help you save on expenses you would otherwise have to cover yourself. Among these benefits are tools like member accounts that reimburse eligible healthcare expenses for employees, and sometimes even their spouse and children. Read for our Employee Benefits Guide on HSA, HRA, and FSA:

HSA 

An HSA (Health Savings Account) is an account that is employee-owned and employee-funded, allowing employees to set aside pre-tax dollars towards this fund.  

• Contribution: Individuals can contribute up to $4,150 per year and families can contribute $8,300.
• Eligibility: Employees must be enrolled in a high-deductible health plan.
• Used by: HSAs can be used for the employee, spouse, and eligible dependents. 
• Benefits: 
  • Offers tax advantages.
  • Funds roll over each year, making it a good long-term saving tool. 

HRA

An HRA (Healthcare Reimbursement Arrangement) is an account that is employer-owned and employer-funded, meaning that the employer sets aside funds to cover eligible healthcare costs. 

• Contribution: There is no limit on how much an employer can contribute per year. 
• Used By: HRAs can be used for the employee and their eligible dependents. 
• Flexibility:
  • No need for a high-deductible health plan to qualify.
  • Employers have more flexibility when creating the plan.
  • A wide range of medical expenses are covered.

FSA

An FSA (Flexible Spending Account) is an account that is employer-owned and employee-funded, where employees can set aside pre-tax dollars through payroll deductions. 

• Contribution: Employees can contribute $3,200 per year. 
• Used by: FSAs can be used for the employee, spouse, and eligible dependents. 
• Rules:
  • “Use it or lose it” rule, meaning any funds not used by the end of the year may be forfeited.
  • Can cover co-pays, prescriptions, and over-the-counter medications. 

Hopefully our Employee Benefits Guide helped create an understanding of these accounts to help you make the most of your employee benefits. By utilizing HSAs, HRAs, and FSAs, you can better manage your healthcare expenses, save money, and make sure that you and your family’s health needs are met. Whether you plan for immediate healthcare costs or to save for future emergencies, choosing the right account for your needs will make a significant difference. Want a more detailed description? Check out one of our providers resources here: Click Here.

If you have questions about these accounts or need assistance in selecting the right plan for your needs, reach out to me or contact one of our talented Risk Advisors today!

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