HSA/HRAPay for eligible health care expenses tax-free.
Depending on the plan you enroll in, Michaels sets up either a Health Reimbursement Account (HRA) or a Health Savings Account (HSA) to help you pay for eligible expenses.
The accounts work differently. Here’s a closer look at each of the accounts.
Health Savings Account (HSA)
An HSA is an account that works like a 401(k) plan for health care expenses when you elect Choice HSA medical coverage. Michaels contributes tax-free dollars, and you can contribute, too. You can use the funds to pay for eligible health care expenses now and in the future.
Who contributes? You and Michaels
How much can I contribute? You can contribute up to $3,225 (individual) or $6,450 (family) in 2020.
What can I use it for? Medical, dental and vision expenses, like:
- Office visits, in- and out-of-network
- Prescription drugs
Does it roll over from year to year? Yes, even if you leave Michaels.
How do I access my account? You must set up an account through HealthEquity (the HSA administrator) to receive Michaels and your contributions. You receive a debit card to pay for eligible expenses. Also, you can submit a claim through HealthEquity.
Is the company money deposited all at once? No. The company deposits money into your HSA each pay period.
Health Reimbursement Account (HRA)
An HRA is an account with tax-free dollars that helps pay for eligible out-of-pocket medical expenses when you elect Select HRA medical coverage.
Who contributes? Michaels
How much can I contribute? You may not contribute to the account.
What can I use it for? Your account is automatically debited when you receive covered medical services, typically applied to your deductible.
Does it roll over from year to year? Yes, until you’re no longer enrolled in a Michaels HRA plan.
How do I access my account? Your account is automatically debited when you receive covered medical services.
Is the company money deposited all at once? Yes. You receive the full company contribution at the beginning of the plan year.