Health Savings Account

Health Reimbursement Account

Medical Savings Account

Availability

Individuals and any size group

Any size group

(not available to partners in a

partnership, shareholders who own

more than 2% stock in a Sub S corp

and members of a LLC)

Self-employed individuals and groups of up to 50

Maximum Contributions

The lesser of deductible or $2,600 for singles and $5,150 for families

(amount increased annually based on CPI)

Maximum reimbursement

determined by employer

Up to 65% of the single (max of $1,690) and 75% of the family (max of $3,862) deductible

Additional Contribution Allowance

Additional contributions allowed for age 55 and older ($500 in 2004)

Not applicable

No

Eligible Contributors

Individuals, employers and/or employees

Employers only

Self-employed individuals, employers or employees

Tax Deductibility – Employer

Contributions are tax deductible

Reimbursements are tax deductible

Contributions are tax deductible

Tax Deductibility – Employee

Contributions may be either pre-tax if offered through a cafeteria plan or tax deductible (no need to itemize)

No employee tax deduction (employer sponsored)

Contributions are tax deductible

Fund or Account Ownership

Employee

Employer

Employee

Portable

Yes

No

Yes

Rollover of Funds

Yes

Employer determines if allowed and can set caps

Yes

Funding Required

Yes

No pre-funding necessary

Yes

Plan Types

High deductible plan required

as defined by HSA laws;

no copay plans

No plan restrictions

High deductible plan required

as defined by MSA laws;

no copay plans

Deductibles Singles – 2004

$1,000 minimum

No limits

$1,700 - $2,600

Deductibles Families – 2004

$2,000 minimum

No limits

$3,450 - $5,150

Out-of-Pocket Maximum

Singles – up to $5,000

Families – up to $10,000

(includes deductible but not

out-of-network costs)

No limits

Singles – up to $3,450

Families – up to $6,300

(includes deductible and

out-of-network costs)

Rx Copay Allowed

No

Yes

No

Administration

Insurance company, TPA or bank

Self-administered, insurance

company or TPA

Insurance company, TPA or bank

Withdrawals for non-qualified medical expenses

Taxable and subject to 10% penalty

(no penalty for over 65)

Reimbursements only for qualified eligible expenses; employer determines whether  to pay after age 65

Taxable and subject to 15% penalty

(no penalty for over 65)