Which Medical Plan is Best for Me?

Owned by Dorsey, Alie
Last updated: May 11, 2017

The answer, of course, depends on your needs.  To help you, we can provide you with the similarities and difference between both plans as you consider what would be best for you and your family.

What’s similar?

The design behind the Health Reimbursement Account (HRA) and the Health Savings Account (HSA) are the same – to provide you with affordable health care coverage through lower premiums and offering our faculty and staff financial support to help you pay for any out of pocket health care expenses through SPU’s contributions into these accounts.

Both plans are offered with a high deductible health plan, encouraging you to become more involved in your health care decisions by giving you more control over how and when you spend your healthcare dollars. Cigna provides you with helpful tools, information and resources that will help you make informed health care decisions for yourself and your dependents, while helping lower your overall costs through consumer-directed involvement in claim costs which ultimately keeps premiums lower for all participants on the plans. 

Both plans offer the same:

  • Network of doctors and medical facilities

  • Medical services and coverage

  • Deductible and co-insurance

  • 100% coverage for preventive care (annual physicals, mammograms, prostate screening, some Rx)

 

What’s the difference? 

One of the most important differences between the two is that SPU owns the HRA and YOU own the HSA.  This means that you keep your HSA when you leave SPU.  If you elect the HRA and either un-enrolling in the HRA plan later or you leave the university, the result will be that any funds in the account will be forfeited or lost to you on the date you are no longer an active participant in that plan.

The eligibility for the two plans must be considered:

 HSA

  • You are covered on the High Deductible Health Plan (HDHP).
  • You are not enrolled in Medicare.
  • You do not have coverage under another, non-HDHP health plan or general-purpose Flexible Spending Account (FSA).
  • You are not claimed as a dependent on someone else's tax return.

 HRA

  • You are covered on the High Deductible Health Plan (HDHP).

Another significant difference involves how the two accounts are funded.  The money in the HRA is solely contributed by SPU and there is no match available due to IRS regulations.  HSA accounts are tax-advantaged accounts that both you and SPU can contribute to, up to the IRS maximums.  In addition, SPU provides a dollar-for-dollar match up to $400 for individuals and $800 for family coverage.

The last important difference to consider is your cash flow.  The entire annual SPU contribution is available on the first day of the plan year.  For the HSA account, SPU’s contributions are provided monthly. 

To help you determine which is best, here are the specific advantages of each type of fund:

HSA

  • Asset accumulation

  • Tax-free contributions and interest

  • Tax-free spending for health care expenses

  • Investment with interest

  • Long-term savings for major medical or retirement

  • Assets are portable

  • Pre-tax payroll deductions

HRA

  • Asset accumulations, rolls over year to year as long as you are actively enrolled in this plan
  • Funded entirely by SPU - Funds are available from the first day of coverage
  • May be used with other health plans, including a spouse's medical plan, Flexible Spending Account, and Medicare