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It’s simple – more employee choice and flexibility. One size does not “fit all” and an HRA would not be established to cover every employee’s medical expenses.
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* Special rules apply ** Generally, if over 100 participants; Welfare benefits rules apply
Information for the graph provided by MHM
MMMA continues to be in the forefront of health care changes. For more information on MMMA’s Advantage Health Plan on HRAs and FSAs, contact Sheelah at the MMMA office, 636-537-1360 or (800) 467-MMMA (6662), or by email to Sheelah@mmma.org.
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Benefit Comparison |
FSA |
HRA |
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Small/Large Employers |
Yes |
Yes |
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C-Corp Owners |
Yes |
Yes |
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Self-Employed |
No |
No |
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Plan Document |
Yes |
Yes |
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SPD |
Yes |
Yes |
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Can maintain current health provider relationship |
Yes |
Yes |
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Employer contributions |
Optional |
Required |
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Employee contributions |
Optional |
No |
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Employee tax savings |
Claim Reimbursements are tax free |
Claim reimbursements are tax free |
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Employer tax savings |
Business expense—plus 7.65% of employee contribution |
Business expense deduction for payments |
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Account pre-funded by employer |
Yes |
No |
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Roll unused dollars to next year |
No |
Yes |
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Reimburse IRC Section 213 (d) medical expenses not covered by any other plan |
Yes |
Yes |
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Claims substantiation |
Yes |
Yes |
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Debit card |
Yes |
Yes |
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Insurance premiums paid from account |
No |
Yes |
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Long-term care premiums paid from account |
No |
Yes |
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Annual IRS-DOL Form 5500 (no tax due) |
No**/Yes |
No**/Yes |
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COBRA applies |
*Yes |
Yes |
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HIPAA certification rules apply |
*Generally, No |
Yes |
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HIPAA privacy and security rules apply |
Yes |
Yes |
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Account retained by employee upon termination of employment? |
No |
No, but terminated employees may be covered by plan |