What is the difference between and HRA and an HSA?

Health Reimbursement Arrangement (HRA) Health Savings Account (HSA)
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
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
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.
Posted in HRA vs HSA.