Compare Health Expense Funds
Comparing health expense funds, at a glance
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|
HRA |
HSA |
FSA |
RRA |
|
Who is eligible? |
All employees, as designated by the employer |
Anyone covered by a qualified high-deductible plan |
All employees, as defined by the IRS |
All employees, as designated by the employer |
|
Who can contribute? |
Employer only |
Employer, employee or both |
Employer, employee or both |
Employer only |
|
Does the balance carry over? |
Yes – plan can define carry-over limit; HRA balance can carry over to RRA. |
Yes |
Yes, up to $500, or a grace period may apply (but not both). |
Yes |
|
Can rollover contributions from another account be made to this account? |
No |
Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted. |
No |
Can roll over funds from an HRA |
|
Is the fund or account portable? |
No |
Yes |
No |
No |
|
Are there interest or investment earnings? |
No |
Yes |
No |
No |
|
What are the tax advantages? |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
Employers with a cafeteria plan enjoy FICA tax savings. |
Employers with a cafeteria plan enjoy FICA tax savings. |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
|
Are contributions taxable income to the employee? |
No In addition, contributions are not subject to FICA or FUTA taxes. |
HDHP; otherwise taxable In addition, contributions are not subject to FICA or FUTA taxes. |
No In addition, contributions are not subject to FICA or FUTA taxes. |
No In addition, contributions are not subject to FICA or FUTA taxes. |
|
Are distributions ⁄ reimbursements taxable income to the employee? |
No |
No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty. |
No |
No |
|
Is the Aetna Performance Network (Aexcel)* available? |
Yes |
Yes |
N/A |
N/A |
|
Who is eligible? |
||||
|
HRA |
All employees, as designated by the employer |
|||
|
HSA |
Anyone covered by a qualified high-deductible plan |
|||
|
FSA |
All employees, as defined by the IRS |
|||
|
RRA |
All employees, as designated by the employer |
|||
|
Who can contribute? |
||||
|
HRA |
Employer only |
|||
|
HSA |
Employer, employee or both |
|||
|
FSA |
Employer, employee or both |
|||
|
RRA |
Employer only |
|||
|
Does the balance carry over? |
||||
|
HRA |
Yes – plan can define carry-over limit; HRA balance can carry over to RRA. |
|||
|
HSA |
Yes |
|||
|
FSA |
Yes, up to $500, or a grace period may apply (but not both). |
|||
|
RRA |
Yes |
|||
|
Can rollover contributions from another account be made to this account? |
||||
|
HRA |
No |
|||
|
HSA |
Yes, rollover contributions from another HSA are permitted; one-time rollover from IRA also permitted. |
|||
|
FSA |
No |
|||
|
RRA |
Can roll over funds from an HRA |
|||
|
Is the fund or account portable? |
||||
|
HRA |
No |
|||
|
HSA |
Yes |
|||
|
FSA |
No |
|||
|
RRA |
No |
|||
|
Are there interest or investment earnings? |
||||
|
HRA |
No |
|||
|
HSA |
Yes |
|||
|
FSA |
No |
|||
|
RRA |
No |
|||
|
What are the tax advantages? |
||||
|
HRA |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
|||
|
HSA |
Employers with a cafeteria plan enjoy FICA tax savings. |
|||
|
FSA |
Employers with a cafeteria plan enjoy FICA tax savings. |
|||
|
RRA |
Employers may deduct reimbursed employee medical expenses as a business expense; reimbursements may be excluded from the employee's gross income. |
|||
|
Are contributions taxable income to the employee? |
||||
|
HRA |
No In addition, contributions are not subject to FICA or FUTA taxes. |
|||
|
HSA |
HDHP; otherwise taxable In addition, contributions are not subject to FICA or FUTA taxes. |
|||
|
FSA |
No In addition, contributions are not subject to FICA or FUTA taxes. |
|||
|
RRA |
No In addition, contributions are not subject to FICA or FUTA taxes. |
|||
|
Are distributions ⁄ reimbursements taxable income to the employee? |
||||
|
HRA |
No |
|||
|
HSA |
No, if made for qualified medical expenses; otherwise subject to income tax and 20% penalty. |
|||
|
FSA |
No |
|||
|
RRA |
No |
|||
|
Is the Aetna Performance Network (Aexcel)* available? |
||||
|
HRA |
Yes |
|||
|
HSA |
Yes |
|||
|
FSA |
N/A |
|||
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RRA |
N/A |
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HSAs are currently not available to HMO members in California and Illinois.
HRAs are currently not available to HMO members in Illinois and Small Group members in Florida.
*The Aexcel network is only available in select locations. Aexcel is not available with HMO plans. Aexcel designation is only a guide to choosing a physician. Members should consult with their existing physicians and the specialists they’re selecting before making a decision. Designations have the risk of error and should not be the sole basis for selecting a doctor.
Health benefits and health insurance plans are offered, underwritten and/or administered by Aetna Health Inc., Aetna Health of California Inc., Aetna Health Insurance Company of New York, Aetna Health Insurance Company and/or Aetna Life Insurance Company (Aetna). In Florida by Aetna Health Inc. and/or Aetna Life Insurance Company. In Maryland by Aetna Health Inc., 151 Farmington Avenue, Hartford, CT 06156. Each insurer has sole financial responsibility for its own products.
This material is for information only and is not an offer or invitation to contract. An application must be completed to obtain coverage. Investment services are independently offered by the HSA Administrator. Aetna HealthFund HRAs are subject to employer-defined use and forfeiture rules and are unfunded liabilities of your employer. Fund balances are not vested benefits. RRAs are subject to employer-defined use and forfeiture rules. Information is believed to be accurate as of the production date; however, it is subject to change. For more information, refer to www.aetna.com.
Policy forms issued in OK include: HMO OK COC-5 09/07, HMO/OK GA-3 11/01, HMO OK POS RIDER 08/07, GR-23 and/or GR-29/GR-29N.
