KEY FEATURES

HSA

HRA

HEALTH CARE FSA

Account funded by

Anyone, including employer, employee, family members.

Employer

Employee

Interest bearing

Yes

No

No

High-deductible medical plan required

Yes

No

No

Balance carryover

Yes

Yes, self-funded employers may limit amount

No

Portable

Yes

No

No

Maximum funding amount

The lesser amount of the annual deductible or $2,700* for individuals and $5,450* for families. Individuals aged 55-64 can contribute a “catch-up” amount of $700 in 2006 and an additional $100 every year until amount equals $1,000 in 2009

Employer determines

Employer determines

Availability of funds to members

Funds are available as deposited in account

Full amount of funds is available at the beginning of plan year

Full amount of funds is available at the beginning of plan year

Qualified medical expenses

No tax on distribution for qualified medical expenses as defined by section 213(d) of IRS code. Also included are tax-free distributions for: long term care insurance, COBRA coverage and health insurance premiums while receiving unemployment compensation.

No tax on distribution for qualified medical expenses covered by medical plan.

No tax on distribution for qualified medical expenses as defined by section 213(d) of IRS code. Health insurance premiums are not reimbursable.

Reimbursement for non health related expenses

Yes. But subject to gross income tax and additional 10 percent tax penalty.

No

No

Substantiation of fund distributions

Employee is responsible.

Employer is responsible

Employee is responsible

Available to medical enrollees

No

Yes

Yes

Eligibility/combining arrangements

Cannot be offered with HRA or FSA, except in limited circumstances (i.e., dental or vision services nor covered by medical plan

Can be offered with FSA

Can by offered with HRA