You may have more than one reimbursement account for qualified medical expenses. The information below should help you understand how these plans work together.
|Health Reimbursement Arrangement (HRA)||Flexible Spending Account (FSA)||Health Savings Account (HSA)|
|An account funded by employer contributions which participants in eligible employee classes may use to reimburse eligible medical expenses as specified in the plan document for each class. Unused funds in the account at the end of the plan year typically carry over to the following plan year.||An account funded by elected employee pre-tax payroll deductions that participants may use for certain health care and dependent care expenses. Unused funds in the account at the end of the plan year may forfeit and not carry over to the following plan year, unless otherwise specified by the plan document, as some plans allow for a $550 rollover.||An account available to employees enrolled in a qualifying High Deductible Health Plan and funded by elected employee pre-tax payroll deductions that participants may use to pay for qualified medical expenses. Unused funds in the account carry over to the following year.|
If you have….
An HRA and HSA
If during the HRA plan year, you or your employer, or your spouse or spouse’s employer, contributes to an HSA, your HRA must be restricted for the plan year. While restricted, you can only seek reimbursement for dental, vision, preventive care, post-deductible, and premium expenses from your HRA.
An FSA and HSA
If you, your employer, your spouse or your spouse’s employer are contributing to an HSA, your FSA must be a limited purpose FSA, meaning reimbursements are limited to dental and vision expenses.
An HRA and FSA
If your FSA and HRA both provide coverage for the same medical expenses, reimbursements are processed according to the ordering rules established in your plan. For example, if the plan specifies that the FSA pays first, your expense will be applied to the FSA until the balance is depleted and then reimburse from the HRA thereafter. However, if the HRA is limited purpose or premium only, then the HRA and FSA accounts can be accessed concurrently for different expenses.
If you need to restrict or suspend either your HRA or FSA, you must complete the HRA_FSA Account Restriction/Suspension Form. Click here to download the form.