What is the difference between an HRA, HSA and an FSA

HRA: If you participate in the Meritain HRA Low or High Plans, you have access to an HRA. The company contributes to this account for you and you can use the money to pay for eligible medical out-of-pocket expenses for you and your dependents.

HSA: If you have a High Deductible Health Plan (Wedgewood offers a HDHP as its Base Plan option), you can contribute to an HSA. You can use the funds you contribute to an HSA as a “medical nest egg.” Because your money grows in the account tax-free, you can decide whether you want to use the money now or in the future – even in retirement. The company also contributes to your HSA – Wedgewood will fund $840 annually into employees’ HSA accounts. HSA’s will be funded $70 per month.

FSA: You can be enrolled in any medical plan except for a high-deductible plan to participate in an FSA. The money in your FSA can be used to purchase health-related items that are not taxed, so the things you buy with your FSA contributions are like using a 20% or even a 30% off coupon (depending on your tax bracket). The company does not contribute to this fund – you are the sole contributor. The 2024 maximum contribution limit set by the IRS is $3,200.

To learn more about the HRA, click here. To learn more about the HSA, click here. To learn more about the FSA, click here.