What's The Difference Between HRA And FSA?

Health Reimbursement Accounts (HRAs) and Health Care Flexible Spending Accounts (FSAs) are special accounts that are designed to keep more money in your pocket, but they work differently. One way they work differently is how they are funded – the HRA is funded by the company, while the FSA is funded by you. Here are a few more differences between the two accounts:

HRA: The HRA is paired with the HDHP Aetna Select Open Access medical plan. While the company funds the account, the amount it provides varies based on your medical coverage level. The company contributes $2,500 if you are enrolled in single coverage and $5,000 for all other coverage levels. Medical expenses that are eligible under the Aetna coverage but are applied to the annual deductible or out-of-pocket maximums are eligible for reimbursement under the HRA.

Health Care FSA: In a Health Care FSA, employees may elect to contribute to the account. The IRS sets the limit on how much you can contribute each year. For 2024, the maximum amount you can contribute to the Health Care FSA is $3,200. Your contributions are deducted from your paychecks BEFORE your earnings are taxed (thereby reducing your taxable earnings) and placed into the FSA. The money in your FSA can be used for a variety of health expenses such as:  eligible medical expenses associated with your health plan deductible, coinsurance and other out-of-pocket expenses; dental and vision care; over-the-counter medications (requires an RX by a doctor); supplies like bandages, and more!  Check irs.gov, publication 502 for details.

PLEASE NOTE that you may rollover up to $640 of unused FSA funds into 2025.  Any unused FSA amounts that remain in your account after the year in excess of the $640 will be forfeited.

To learn about your HRA, click here. To learn about your Health Care FSA, click here.