Individuals can pay for healthcare services with a Health Reimbursement Account (HRA) or a Health Savings Account (HSA), among other methods. The HRA is a reimbursement account, offered by an employer. An HSA, on the other hand, is a savings account for the consumer. When providing medical services, it is important to know the difference. This can save a lot of headache and confusion from employees and patients alike.
What HRAs Mean for Medical Service Providers
An HRA is a means of paying for medical services. If a patient needs assistance to pay for their medical bills, the HRA can do just that. Service providers and insurance companies are still able to make a profit, and patients are able to receive the care that they need.
HSA for Reimbursement Purposes
The primary purpose of an HSA is for the employee or individual to set aside pretax money for healthcare costs. While HSAs are not reimbursement accounts, like HRAs, they do come into play in the medical billing process. Patients with HSAs can use their accounts to pay for qualified medical expenses. This makes medical care more affordable for patients, and it makes the billing process easier for service providers.
Combining HRAs and HSAs
While HRAs and HSAs both allow patients to pay for medical expenses with pre-tax money, they are different in almost every other way. This is why it is important for patients to combine them when paying for medical care. Combining the two accounts to pay for medical expenses eases the financial burden of the patient, and it allows medical service providers to properly care for patients.
As a medical reimbursement company, at Advanced Reimbursement Solutions, we want to help you with the complicated process of medical reimbursement. Simplify your medical billing process by having a good understanding of both HRA and HSA. Be sure to contact us today in Phoenix or Wilmington with any further questions.