Posted in Consumer-Driven Health Care, Economic Issues, Employee Benefits, Employer-Sponsored Health Plans, Health Reimbursement Arrangement (HRA), Health Savings Accounts (HSA's), Medical Costs, Patient Choice, Uncategorized

HSAs vs. HRAs: Which is Better? | Health Policy Blog |

I had a conference call this week with the commissioners of a county who are considering adopting Health Savings Accounts for their employees. They said their current broker has been discouraging them from doing so in favor of a Health Reimbursement Accounts instead. They wanted to pick the brain of someone who has no axe to grind.

I told them that HRAs are fine, but not as effective as HSAs in most situations. I explained that the American Academy of Actuaries AAA has long held that the economizing behaviors depend largely on to what extent employees view the money as their own. HSA funds clearly belong to the employee and to no one else. HRA funds are always the employer’s money and may be spent solely on services that are covered by the employer’s health plan.

via HSAs vs. HRAs: Which is Better? | Health Policy Blog |


A primary care physician by training, my passion is researching and writing about the importance restoring patient centered care, supporting independent private physicians, promoting free-market solutions and seeking sustainable fiscal policy in healthcare.

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