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Health Savings Accounts (HSAs)

Account Comparison Chart

Health Savings Accounts are just one of the alternatives offered by J.P. Morgan to assist companies and employees in controlling healthcare costs. The chart below provides a brief comparison of Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs).

  HSA FSA HRA
How is account established? By eligible individual or employee Via employer-sponsored benefit program (cafeteria plan) Via employer-sponsored benefit program
Owner of account By individual/employee, in a personal account with tax-free interest By employer, in a non-interest-bearing account By employer (no account; it is an arrangement)
Source of funds • Employee pretax payroll deductions
• Employer
• Family members, etc.		 Employee pretax payroll deductions. (Employer funds beginning of year expenses.) Employer only
Unused funds carry over year after year? Yes No; forfeited ("Use it or lose it") At employer's discretion
Portable for consumer? Yes No; except COBRA No; money belongs to the employer
Maximum contribution? Yes, $3,100 for employees and $6,250 for families in 2012. Additional $1,000 for accountholders age 55+ No; but employers typically limit to $2,500-$5,000 No; but usually less than the deductible
Can be used for any purpose after age 65? Yes No No
Account type Trust or Custodial Account General assets of employer General assets of employer
Insurance requirements Qualifying High Deductible Health Plan (HDHP) None None
Method of withdrawing money Debit card, online bill pay, check, ATM Debit card, claims Employer/TPA reimbursement
Substantiation of expenses Accountholder bears responsibility Third party must provide substantiation Third party must provide substantiation
Participation in more than one vehicle? HSAs can be combined with limited-purpose FSAs or HRAs. HSAs cannot be combined with general-purpose FSAs or HRAs. FSAs can be combined with HRAs. Limited-purpose FSAs can be combined with HSAs. HRAs can be combined with FSAs. Limited-purpose HRAs can be combined with HSAs.

 

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