HRA vs HSA?

[jeromedawg]

Hey guys,

The new company I'll be starting out sent out the benefits packet and I'm thoroughly confused. It seems the only type of plans offered are HRA or HSA type plans. There is an HMO with Kaiser but I don't see anything about premiums. I'm so used to paying a bi-weekly or per-paycheck premium on health coverage so this is very foreign to me. Is "no premium" plans becoming the norm or something? Or am I missing something?

[jorjor]

I would just ask them about premium costs. I have seen situations where whichever plan the company offers as a "baseline plan" (usually the least rich plan) is free. I certainly wouldn't call it a norm.

[rtrnow]

Hey guys,

The new company I'll be starting out sent out the benefits packet and I'm thoroughly confused. It seems the only type of plans offered are HRA or HSA type plans. There is an HMO with Kaiser but I don't see anything about premiums. I'm so used to paying a bi-weekly or per-paycheck premium on health coverage so this is very foreign to me. Is "no premium" plans becoming the norm or something? Or am I missing something?

No premium is certainly not the norm. HRA and HSA are accounts used to pay medical expenses and do not directly have anything to do with premiums. In general the HSA is better bc you control the money and it will follow you even when you leave employment. HSA's are actually the only truly tax free money you can save for retirement.

Typically HRA money is controlled by the employer and must be used in a calendar year. With a HSA you and/or your employer can contribute up to the IRS max ($3,350 for single) and you direct how to invest or not that money. Mine is all in low cost Vanguard funds. IMO an hsa plan is great for those of us who rarely use doc visits.

[jeromedawg]

I'll have to research this more - I find it odd that the premiums aren't listed.

As far as HRA, it appears as though the company make contributions to that account but not the HSA. So I guess there's a bit of a trade-off there, but it seems HSA is best since you can invest the money and it's pre-tax.

I also don't see the premiums they charge for dental and vision. Very strange. Maybe I'm just not looking in the right place...

[jorjor]

I think you are reading way too much into the "premiums not listed" thing. Ours arent listed in our delivered open enrollment materials becuase it differs by location. When you go onto the open enrollment site, they are listed.

Just ask.