Employer Information and Resources - CDH Plan Comparison
Comparison of Consumer-Driven Health Plans
Feature | HSA | HRA | FSA |
---|---|---|---|
Who owns the money in the account? | Individual | Employer | Individual (subject to "use it or lose it" rule at end of plan year) |
Can the money be invested with interest earned? | YES | NO | NO |
How is the account funded? | Deposited directly into the account. | Employer funded as needed. | Deposited directly into the account. |
Is the fund portable? | YES | NO | NO |
Are the funds taxable? | Contributions are 100% tax deductible.* Funds spent on medical expenses are tax-free for life. At 65, funds used to supplement income are tax-deferred. | Funds used to pay for medical expenses are not reported as income. | Contributions are 100% tax deductible. |
Can the funds be used for non-medical expenses? | YES, but they are subject to taxes and a 10% penalty. | NO | NO |
How can an employee access funds? | Employee has direct access to funds via debit card, internet or fax - Direct Deposit available. | Employee provides receipt for services. | Employee provides receipt for services. |
Who can contribute to the account? | Both employers and individuals. | Employer only. | Both employees and employers. |
What type of health plan is required? | HSA qualified high-deductible (2009). Individual: $1,150. Family: $2,300. |
No requirements. | No requirements. |
Who is eligible? | Any employee or individual under 65 who have a qualified High-Deductible Health Plan (HDHP). | Current and former employees. No restrictions on group size. | An employee who satisfies the eligibility requirements established by the employer. |
Can the plan be included in a cafeteria plan? | YES | NO | YES |
Is there a "catch up" provision for older individuals? | Yes, in 2009, an individual turning 55 or older may contribute an extra $1,000 per year. | NO | NO |
Is there a maximum contribution per year? | In 2009, $3,000 for individuals and $5,950 for families. Pro-rated by the effective date of health plan. | NO. It is an arrangement by the employer to pay for medical expenses. | NO |
*Some states do not follow the federal HSA guidelines. Verify your state here.