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ARTICLE What Type of Health Savings Account Should You Choose?

Three small glass cups turned upside-down with a ball under one cup.Health savings accounts can help you manage health care plan costs.

If you choose a high-deductible consumer-driven health plan, you may want to consider adding a Health Reimbursement Account (HRA) or Health Savings Account (HSA) as well.


An HRA or HSA is a savings account for the employee. Employees can apply those dollars to their deductibles or other health care costs.


How an HRA works
As the employer, you fund the HRA with pre-tax dollars. Employees use the account to pay for health care expenses, such as deductibles and copayments.


Unused HRA funds belong to you. They also remain with you if the employee leaves your company.


Benefits to your company:

  • Lower health care costs when paired with a high-deductible policy
  • Contributions are tax-deductible
  • Unused dollars belong to you
  • Flexible plan design
  • Employees share responsibility for spending
  • May improve employee health

Benefits to your employees:

  • More control
  • Offers wellness and preventive care resources
  • Potentially lower premiums
  • Employer contributes money to help defray medical costs

How an HSA works
Both employees and employers can fund the HSA with pre-tax dollars. Employees use the account to pay their health care costs, including deductibles and copayments. Unused funds belong to the employee.


Benefits to your company:

  • Contributions are tax-deductible
  • Employees share responsibility for spending
  • May improve employee health

HSA benefits to your employees:

  • More control
  • Potentially lower premiums
  • Contributions are tax-deductible
  • Eligible withdrawals, interest earnings, and investments are tax-free
  • Unused funds roll over from year to year
  • Savings can be transferred to another plan if employment ends

UnitedHealthcare Definity Health Reimbursement Accounts (HRA)
UnitedHealthcare Definity Health Savings Accounts (HSA)
HSA Center


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