Health Savings Accounts

Policy Definition: A health savings account (HSA)is a type of savings account that allows consumers to set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, overall health care costs to consumers may decrease. HSA funds generally may not be used to pay premiums and consumers can contribute to an HSA only if they have a qualifying HDHP. source

Health Reimbursement Accounts

Policy Definition: A Health Reimbursement Accounts (HRAs) is a type of savings account  available for employers to reimburse employees for out-of-pocket health care costs and premiums. The money, which is paid to employees, much like the HSA, is tax-exempt. source

Flexible Spending Accounts

Policy Definition: A Flexible Spending Account (FSA), or a flexible spending arrangement,) is an account that houses tax-free dollars that can be used to cover out-of-pocket healthcare costs. The individual and their employer may both contribute to an FSA. source