HSA AND HRA EXPLAINED

HSA (Health Savings Account)

This is an account paired with a with a high-deductible health plan. The premium you pay is usually lower than with other plans. You put money that has not been taxed into this account. (Your employer can pay into the account, too.) Then, spend the account to pay for eligible health costs today - or save it for health costs later. Your money builds interest. And since an HSA is yours to keep, you take it with you if you change jobs or health plans.

Why you might like an HSA: You pay no taxes on money you put into the account or on money you use to pay for qualified health care costs. Best of all, you can let the account grow year after year - and it goes where you do.

HRA (Health Reimbursement Arrangement)

This is a fund that works with a health plan, like an HMO or PPO. Your employer sets up and pays into the fund. Then, you can use it to pay for deductibles, copays and many other health care costs you'd normally pay out of pocket. The fund rolls over from year to year, as long as you remain in the plan. But if you change plans or leave your company, you can't take the fund with you.

Why you might like an HRA: You can use employer funds to pay less out of pocket. And most or all your of your preventive care is covered.

Choosing the best individual health insurance plan for you and your family can be a difficult, confusing and stressful. At Don Cousins & Associates, we can offer a variety of options and then help you decide what is best for you, your family or your business.  Call us today at (504) 889-1898 for a free consultation.