Andrew discovered that the Consumer Directed Health Plan he had established was subject to new contribution limits when he switched the tier 1 payment mechanism from an HRAs to an HSA.
What is the explanation for the above?
First, note that HRA means - Health Reimbursement Arrangements and HSA means Health Savings Account.
It is to be noted that contribution by Employer to the HRAs are not restricted or capped, but they are limited to HSAs.
Learn more about HRA:
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