Health Expense Funds Product Features

Add consumer-directed products to your traditional mix of health benefits and health insurance plans.

Aetna’s consumer-directed products let you offer:

• Health savings account (HSA)*
• Health reimbursement arrangement (HRA)*
• Flexible spending account (FSA)
• Retiree reimbursement arrangement (RRA)

Here they are, at a glance.

	HSA	HRA	FSA	RRA
Who is eligible?	Any individual covered by a qualified high-deductible plan	All employees, as designated by employer	All employees, as defined by the IRS	All employees as designated by employer
Who can contribute?	Employer, individual, or both	Employer only	Employer, individual, or both	Employer only
What are the funding options?	Funded by employer,employee and others	Employer-funded, paid as incurred (No employee contributions permitted)	Self-funded, paid as incurred, up to employee’s contribution election, (HC FSA), paid as incurred up to employee’s contribution (DC FSA) less any prior reimbursements	Employer-funded, paid as incurred (No employee contributions permitted)
Does the balance carry over?	Yes	Yes – plan can define carry-over limit; HRA balance can carry-over to RRA One-time HRA balance transfer into HSA	No, although a grace period may apply	Yes
Can rollover contributions from another account be made to this account?	Yes, rollover contributions from MSAs and HSAs are permitted; one-time rollover from IRA, FSA and HRA permitted	No	No	Can rollover funds from an HRA
Is the fund or account portable?	Yes	No	No	No
Are there interest or investment earnings?	Yes	No	No	No
What are your tax advantages?	Employers with a cafeteria plan enjoy FICA tax savings	Employers may deduct reimbursed employee medical expenses as a business expense Reimbursements are excludable from the employee's gross income	Employers with a cafeteria plan enjoy FICA tax savings	Employers may deduct reimbursed employee medical expenses as a business expense Reimbursements are excludable from the employee's gross income
Are contributions taxable income to the employee?	HDHP; otherwise taxable In addition, contributions are not subject to FICA or FUTA taxes	No In addition, contributions are not subject to FICA or FUTA taxes	No In addition, contributions are not subject to FICA or FUTA taxes	No In addition, contributions are not subject to FICA or FUTA taxes
Are distributions ⁄ reimbursements taxable income to the employee?	No, if made for qualified medical expenses; otherwise subject to income tax and 10% penalty	No	No	No
Is the Aetna Performance Network (Aexcel)** available?	Yes	Yes	N/A	N/A

Visit the IRS website for additional information.

* HRAs/HSAs are currently not available to HMO members in Illinois

* HRAs are currently not available for Small Group in Florida