What They Are, How They Work, and How They Save You Money
Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs) are all types of employer-sponsored health benefit accounts designed to help individuals save and pay for qualified medical expenses with tax advantages. However, they differ in key aspects as described in the table below.
| Characteristics | HSA | HRA | FSA |
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You Own the Account |
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Your Employer Owns the Account |
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You Must Have an HDHP* |
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Only Your Employer Can Put Money In |
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You and Your Employer Can Put Money In |
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You Can Invest Money in the Account |
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Must Report Account When You Do Taxes |
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“Use it or Lose it” |
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- High Deductible Health Plan
These materials were supported by funds made available by the Kentucky Department for Public Health’s Office of Population Health from the Centers for Disease Control and Prevention, National Center for STLT Public Health Infrastructure and Workforce, under RFA-OT21-2103.
The contents of these materials are those of the authors and do not necessarily represent the official position of or endorsement by the Kentucky Department for Public Health or the Centers for Disease Control and Prevention.