Choosing & Using Your HSA or HRA

Pay for Eligible Health Care Expenses Tax-Free
Home 5 Guide 5 Health & Wellness 5 Choosing & Using Your HSA or HRA

Choosing an HSA or HRA

To help you pay for eligible in-network health care expenses, Michaels contributes to either a Health Savings Account (HSA) if you enroll in the Select HSA plan, or a Health Reimbursement Account (HRA) if you enroll in the Kaiser HRA plan.

The two types of accounts work differently: this overview offers a closer look at each account in order to help you choose.

Health Savings Account (HSA)

What is a Health Savings Account (HSA)?

A Health Savings Account (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 to the HSA, and you can contribute, too. You can use the HSA funds to pay for eligible health care expenses now and in the future.


How much does Michaels contribute to the HSA?

  • Individual Coverage: Michaels contributes $500 per year.
  • Family Coverage: Michaels contributes $1,000 per year.

If you are a new hire and/or new to the Choice HSA plan, this contribution amount is pro-rated.


How much can I contribute to the HSA?

  • Individual Coverage: You can contribute up to $3,650 in 2024.
  • Family Coverage: You can contribute up to $7,300 in 2024.
  • If you are age 55 or older, you may contribute an extra $1,000 per year.

What can I use the HSA for?

The HSA can be used for medical, dental, and vision expenses, including for deductibles, office visits (in-network and out-of-network), and prescription drugs.


Is the Michaels contribution deposited all at once?

No, Michaels will deposit money into your HSA each pay period.


Do the contributions roll over from year to year?

Yes, the contributions to your HSA will roll over from year to year, even if you leave Michaels.


How do I access my HSA account?

You must set up an account through Health Equity, the HSA administrator, in order to receive your contributions and contributions from Michaels.

You will then receive a debit card, which you can use to pay for eligible expenses. Additionally, claims can be submitted through Health Equity.

Health Reimbursement Account (HRA)

What is a Health Reimbursement Account (HRA)?

An HRA is an account with tax-free dollars that helps pay for eligible medical expenses when you elect Kaiser HRA medical coverage.


How much does Michaels contribute to the HRA?

  • Individual Coverage: Michaels contributes $425 per year.
  • Family Coverage: Michaels contributes $950 per year.

How much can I contribute?

You cannot contribute to the HRA.


What can I use the HRA for?

Your account is automatically debited when you receive covered medical services, typically applied to your deductible.


Do the contributions roll over from year to year?

Yes. The contributions to your HRA will roll over from year to year until you’re no longer enrolled in the Michaels Kaiser HRA plan.


How do I access my HRA account?

Your HRA is automatically debited when you receive covered medical services.


Is the Michaels contribution deposited all at once?

Yes. The full Michaels contribution will be available to you at the beginning of the plan year.

More FAQs About the HRA

Go to Medical Plans & Costs

Deductibles & Coinsurance

Coinsurance and deductibles function differently depending on the plan you choose.

PPO & Kaiser HRA Plans: If you have Family coverage, one person can meet the individual deductible, and then the plan will share costs for that individual (coinsurance).

Choice HSA Plan: If you enroll yourself and at least one (1) dependent, there is no individual deductible. The entire family deductible must be met before the plan pays coinsurance for any covered family member.

How to Use Your Account

First – Use the money Michaels gives you to pay for care.

Michaels puts money into your HSA or HRA depending on the plan you choose and who is covered under your plan. You can use this money to pay for eligible in-network services until the account balance reaches a total of $0.

If you select the Choice HSA plan, the Michaels contribution is deposited one month at a time. If you are a new hire and select the Choice HSA plan, the Michaels HSA contribution is prorated based on when you join the plan.

If you select the Kaiser HRA, you will have access to the full HRA contribution upfront, no matter when you are hired.

Next – You use your money.

If you use all the money Michaels contributed to your account, then you will pay out-of-pocket for any remaining health care expenses, until you meet your deductible. Remember, in-network preventive care is always 100% covered.

Then – You and Michaels share costs.

After you’ve met your deductible, Michaels will pay for a percentage of your health care expenses, and you will pay for the remainder of the costs: this is called coinsurance.

Finally – Michaels has it from there.

If your health care expenses reach your out-of-pocket maximum, Michaels will pay for 100% of your eligible in-network costs for the rest of the plan year.

Providers

Kaiser Permanente