| Feature | HSA | HRA | FSA |
|---|
| Who is eligible? |
Employees who are covered by a high-deductible health plan.
For 2010 and 2011, the IRS defines "high deductible health plan" as a health plan with a deductible of at least $1,200 for individuals and $2,400 for families.
The employee:
- Cannot be covered under other health plans
- Cannot be enrolled in Medicare
- Cannot be claimed as a dependent on someone else's tax return.
|
All employees.
There are special issues that affect participating principals of employers organized as S corporations, partnerships, LLCs, and sole proprietorships. |
All employees.
There are special issues that affect participating principals of employers organized as S corporations, partnerships, LLCs, and sole proprietorships.
|
| Who owns the account? |
The employee. |
The employer. |
N/A |
| Who can contribute to the account? |
The employee, the employer or both. |
Only the employer. |
The employee, the employer, or both.
|
| What are the contribution limits? |
For 2010 and 2011, eligible individuals may contribute a max of $3,050 for self-only coverage and $6,150 for family coverage, regardless of the deductible under the high-deductible health plan (HDHP). Catch-up contributions are permitted for individuals 55 years old and older.
|
The employer decides how much to contribute. |
The employer sets a maximum contribution limit.
The employee decides how much to contribute. |
| What health care expenses can be paid for out of the account? |
All qualified medical expenses (as defined in Section 213(d) of the Internal Revenue Code), COBRA premiums, health plan coverage while receiving unemployment compensation, Medicare premiums and expenses (no Medigap premiums), and qualified long-term care premiums. |
The employer defines covered expenses.
|
Generally, all qualified medical expenses (as defined in Section 213(d) of the Internal Revenue Code).
If the employee also has an HSA, then there are more limits to the kinds of expenses they can pay for from their flex account. |
| Do unused balances roll over so they can be used in future plan years? |
Yes. The rollover is automatic. |
The employer decides whether all or part of the balance will be rolled over to the next plan year. |
No. The employee must spend all the money they contribute to their FSA within the plan year. Any unused funds go to the employer at the end of the year.
|
