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Financial Arrangements - HSA/HRA/FSA


Three types of financial arrangements can be coupled with a HDHP - a Health Savings Account (HSA), Health Reimbursement Arrangement (HRA) or Flexible Spending Account (FSA).

Pre-tax and tax-deductible dollars contributed to these arrangements can be used for IRS-approved qualified medical expenses such as copays, deductibles, coinsurance and prescriptions. HSAs even allow you to pay for vision care, long-term care insurance premiums, COBRA premiums and more.

Each type of financial arrangement is unique in its design, administration and use. Adding a financial arrangement eases the cost burden to your employees.  Be sure to weigh the benefits of each before choosing one.

Here are a few things to keep in mind about each:

  • HSA
    • You and/or your employees may contribute to the account.
    • Your employee owns these funds and can take them from job to job.
    • These funds roll over annually, and earn tax-free interest.
  • HRA
    • Employers own these arrangements, and only can contribute to it.
    • You set the opening balance and what expenses are reimbursable.
    • You maintain available assets to cover potential expenses.
  • FSA
    • Employees contribute funds through pre-tax payroll deductions.
    • Any PPO plan can accompany this financial arrangement
    • Funds don't rollover and are not portable.

Contact  your broker, BlueCross account executive, or call us at 1-800-565-9140 to learn more about HSAs, HRAs and FSAs.