Page 13 - SunWest EE Guide 09-19 Outside CA

Comparing the hra & hsa

The Health Reimbursement Arrangement (HRA) and the Health Savings Account (HSA) are consumer directed
health plans. Despite a few similarities, the HRA and the HSA are quite different when you get down to the details.
Below are a few things to consider:

Health Reimbursement Account (HRA) Health Savings Account (HSA)
Employee Cost Per Paycheck

Base medical plan | Less expensive Buy-up from HRA option | More expensive
Summary

This HRA-based medical plan combines a high deductible An HSA is a long-term savings account you can use to
health plan with an HRA that is sponsored by Sun West. pay for health care expenses. The account goes hand-in-
Once you reach certain limits of your deductible ($3,000 hand with your insurance, but you’ll need an HSA-eligible
per member/$6,000 per family), Sun West will sponsor plan to open and contribute to it. You can put money in
the remaining cost of the deductible prior to your your HSA directly from your paycheck before taxes and
coinsurance and prescription drug copays applying. The spend it whenever you’d like. You can also save by
takeover of employer funding is automatically handled depositing post-tax money in your account and deduct
through the Anthem claims processing. Employer your contributions from your income tax. It is your
funding is only applicable to covered in-network services. responsibility to open your HSA account with HSA Bank if
enrolling in the HSA PPO plan.

Contributions

Only Sun West may contribute to your HRA funding. Sun You or any third party may fund your HSA up to IRS
West contributes $1,500 for individual and $3,000 for maximums.
family accounts, annually.
Your HRA funds are available at the beginning of each Your HSA funds are available to you as they are accrued.
plan year.
Your HRA funds restart each year with a new balance, and Unspent funds are rolled over to the next year. You can
any unspent funds do not roll over from one year to the invest your funds in interest-bearing accounts once you
next. reach a certain balance with HSA Bank.

Tax Implications
Reimbursements are tax-free. The portion of your paycheck that you contribute to your
HSA will be taken out before you pay federal income taxes,
Social Security, and most state taxes (except AL/CA/NV).

Expenses Payment Options
Anthem Blue Cross will automatically charge Sun West for You may use a debit card or pay in full and submit a claim
any expenses utilizing your HRA fund. for reimbursement.
Portability

Any unused funds are forfeited if you terminate Any money left in your HSA is yours to keep if you leave
employment or change medical plans. the company, no longer participate in a HDHP, or retire.

Eligible Expenses
Medical expenses, such as doctor’s office visits, Medical expenses, such as doctor’s office visits,
prescription drugs, deductibles, coinsurance, chiropractic prescription drugs, deductibles, coinsurance, chiropractic
care, and more. care, and more. The HSA can also be used for dental and
vision expenses, and certain future premiums as well.

Employee Benefits 13