Company is dropping HSA for HRA

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Company will be putting in $2000 for the HRA. More details coming before open enrollment. Anyone have experience with the HRA?

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The benefit of this plan is that the $2,000 is there on day one of the plan year. The first $2,000 of covered medical expenses are paid for by the HRA directly. No debit card, no file for reimbursement, and if on January 1st you get in a situation that has a $2,500 cost... the first $2,000 is covered. You don't have that transition period where you need to build up dollars in an HSA.

Like an HSA, unused dollars roll over - provided you stay with that company.

Two big differences from an HSA.

1) You can't add your own money to an HRA.

2) The HRA money is not YOUR money. IF you leave the company, the money stays with the company.

Think of an HRA as the company is basically going to pay the first $2,000 of expenses for you, for situations in which you are covered by the plan.

A company COULD just put $2,000 a year in everyone's HSA... but then the money becomes property of the employee.

I guess the morale builder is that it gives you protection against early-year medical issues, and there is no need to be reimbursed. I believe the benefits of HSA, however, outweigh these.

Thanks for the insight. That is what I gathering as well.
+1 to LSUFanHouston for the great breakdown.

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ETA: I see you address that at the end. If anything it's a point for HSAs since you keep the money.

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From the employee point of view, yes.

Let's say you work there for three years. the company would have put $6,000 in your HSA. Assume no other contributions and you never used the money. When you leave the money, that HSA account with $6,000 goes with you.

In an HRA... the $6,000 goes back to the company.

From a pure dollars and cents, especially for large companies, for the company perspective the HRA makes more sense. Now, to say that this is somehow beneficial to the employees is HR bullshite at it's finest

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Like an HSA, unused dollars roll over - provided you stay with that company.

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Not always the case. Many HRAs do not roll over. You may want to check.

My company just rolled these out today as well, but our HRA (which I had never heard of before) has to be 100% through Kaiser... if you use any non-Kaiser (with some exceptions) then you are responsible.

They haven't done away with the HSA yet... but I ahve a feeling they are introducing the HRA this year, then eliminating the HSA next year.

Oh... and they bumped the spouse-eligible surcharge up to $100/m... even though I'm only on the $19/m high deductible HSA plan.