|
Benefit Comparison
|
FSA
|
HRA
|
| Small/Large Employers |
Yes |
Yes |
| C-Corp Owners |
Yes |
Yes |
| Self-Employed |
No |
No |
| Plan Document |
Yes |
Yes |
| SPD |
Yes |
Yes |
| Can maintain current health provider relationship |
Yes |
Yes |
| Employer contributions |
Optional |
Required |
| Employee contributions |
Optional |
No |
| Employee tax savings |
Claim Reimbursements are tax free |
Claim Reimbursements are tax free |
| Employer tax savings |
Business expense—plus 7.65% of employee contribution |
Business expense deduction for payments |
| Account pre-funded by employer |
Yes |
No |
| Roll unused dollars to next year |
No |
Yes |
| Reimburse IRC Section 213 (d) medical expenses not covered by any other plan |
Yes |
Yes |
| Claims substantiation |
Yes |
Yes |
| Debit card |
Yes |
Yes |
| Insurance premiums paid from account |
No |
Yes |
| Long-term care premiums paid from account |
No |
Yes |
| Annual IRS-DOL Form 5500 (no tax due) |
No**/Yes |
No**/Yes |
| COBRA applies |
*Yes |
Yes |
| HIPAA certification rules apply |
*Generally No |
Yes |
| HIPAA privacy and security rules apply |
Yes |
Yes |
| Account retained by employee upon termination of employment? |
No |
No, but terminated employees may be covered by plan |