| Health Reimbursement Arrangement (HRA) | Health Savings Account (HSA) |
| Funding | |
| Employer funds HRA | Employer and employee funds HSA |
| Funds stay with the employer if an employee leaves an OGB-participating employer | Funds go with the employee when he/she leaves an OGB-participating employer |
| Contributions are not taxable | Contributions are made on a pre-tax basis |
| Only employers may contribute | Employers or employees may contribute |
| Flexibility | |
| Employer selects the maximum contribution | IRS determines the maximum contribution |
| Must be paired with the Pelican HRA 1000 | Must be paired with the Pelican HSA 775 |
| Contributions are the same for each employee | Contributions are determined by employee and employer |
| May be used with a General-Purpose FSA | May be used only with a Limited-Purpose FSA |
| Simplicity | |
| HRA claims are processed by the claims administrator | Employee manages account and submits expenses to the HSA trustee for reimbursement |
| IRS regulations and the Pelican HRA 1000 plan document govern expenses, funding and participation | IRS regulations govern expenses, funding and participation |
| Eligible Expenses | |
| Can be used for medical expenses only | Can be used for pharmacy, dental, vision and medical expenses. |
What is the difference between and HRA and an HSA?
Posted in HRA vs HSA.