LHRA plans (Health Reimbursement Accounts) are employer-funded medical reimbursement plans. The employer funds the account with pre-tax dollars that are set aside for reimbursement purposes so employees can pay health care expenses on an annual basis. Based on the plan design, HRAs can generate significant savings for the employer sponsored insurance program
HSA plans (Health Savings Accounts) are employer-funded medical plans where the employee is assigned a savings account for their specific medical needs. Employers fund the HSA accounts with pre-tax dollars that can be used to pay medical expenses related to the medical insurance provided through the employer group plan. Based on the plan and carrier, HSA’s like HRA’s can generate significant savings for the employer sponsored insurance program.
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