Healthcare costs are a major concern for many employers and their employees. Health savings accounts (HSAs) and traditional health insurance plans are two common options for managing healthcare expenses. But, they have some key differences.

HSAs are savings accounts for medical expenses, while health insurance covers a portion of healthcare costs in return for a monthly premium. Contributions to an HSA are tax-deductible, and earnings are tax-free, making it a good option for reducing your employees’ tax burdens. But, HSAs don't replace insurance. However, health reimbursement arrangements (HRAs) are growing in popularity as an alternative to group plans. They offer tax-free reimbursements for various healthcare expenses. Plus, unused HRA funds stay with the employer, unlike an HSA.

To learn more about how HRAs and HSAs compare, visit PeopleKeep.com. You can also check out our other videos for more benefits and small business tips.

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