Health reimbursement accounts (HRAs) are funded only by employer pre-tax contributions and can be used for eligible medical expenses such as insurance premiums or out-of-pocket expenses. Unused dollars remain with the employer if the employee leaves the organization, although expenses may be reimbursed if the employer’s plan design permits.
Health savings accounts (HSAs) are available for employees with high deductible health plans (HDHPs) and can be funded on a pre-tax basis by employees and/or employers. HSA funds can be used for eligible expenses which include payment to doctors, prescriptions, medical tests, and more. If an employee leaves an employer, unused dollars can roll over to another HSA.