HRA vs. HSA
Blue Cross and Blue Shield of Nebraska
Visit provider website.
NEtwork BLUE Network
PDL 10 (Formerly “BCBSNE Standard Formulary“)
Which one is right for you? The answer depends on your needs.
One of the most important differences between the two health insurance options is that the employer owns the HRA and you own the HSA. This means you take the HSA when you change jobs. If you have an HRA and change jobs, any remaining amount in an HRA defaults to WoodmenLife.
Additionally, an HSA is a tax-advantaged account that can be used to pay for IRS-defined health care expenses, including long-term care and COBRA premiums.
However, there are many factors to consider. Please consult the chart below to make the best decision for you and your family.
|Definition||Health Savings Account||Health Reimbursement Account|
|Deductibles1||$1,500 Associate Only
$3,000 Associate Plus2
|$2,000 Associate Only
$4,000 Associate Plus
|Coinsurance1||25% of cost (After Deductible is Met)||30% of cost (After Deductible is Met)|
|Out-of-pocket Maximum1||$3,000 Associate Only
$6,000 Associate Plus
|$4,500 Associate Only
$9,000 Associate Plus
|Annual Contribution by WoodmenLife3||$500 Associate Only
$1,000 Associate Plus
|$1,000 Associate Only
$2,000 Associate Plus
|May I contribute additional funds?||Yes, contributions can be made on a pre-tax basis up to the annual maximum. Contributions can be changed throughout the year.||No|
|What is the most I can contribute per year?||For 2020, $3,550 Associate Only, $7,100 Associate Plus. For 2021, $3,600 Associate Only, $7,200 Associate Plus. $1,000 additional for age 55 or older.||N/A|
|When are funds available?||Funds are available as they are added to the account||Full fund allocation for the year is available as early as Jan. 1|
|How do I access funds in my account?||Funds are accessed via debit card, request for reimbursement or request to have payment sent||Requests reimbursement from account|
|What can account funds be used for?||Can be used for medical, dental, vision and federally-approved over-the-counter items.||Can be used for second half of medical deductible expenses|
|What happens to remaining funds at the end of the year?||100% available the following year||50% rollover available if enrolled in the Select HRA the following year|
|What am I financially responsible for?||
Full out-of-pocket payment on all services and prescriptions until deductible is met, then
coinsurance until out-of-pocket maximum is met
No payments after reaching annual out-of-pocket maximum
Co-pays for doctors visits, prescriptions, urgent care, and emergency room
Full out-of-pocket payment on hospital stays, outpatient procedures, labs, X-rays until deductible is met, then coinsurance until out-of-pocket maximum is met
No payments after reaching annual out-of-pocket maximum>