Which statement accurately describes the differences between HDHP/HSAs and HDHP/HRAs?

The statement that HDHP/HSAs typically have lower premiums and higher deductibles than HDHP/HRAs is accurate because it reflects the fundamental design of health plans that are paired with Health Savings Accounts (HSAs) versus Health Reimbursement Arrangements (HRAs).

HDHPs, or High-Deductible Health Plans, are characterized by their higher deductibles and lower premiums compared to traditional health plans. When coupled with HSAs, they allow employees to contribute pre-tax dollars to pay for qualified medical expenses, which encourages them to be more conscious of their healthcare costs. This setup generally leads to lower monthly premiums due to the higher out-of-pocket expenses that employees must meet before their insurance coverage begins.

In contrast, HRAs are employer-funded accounts that reimburse employees for incurred medical expenses, which do not require the same level of cost-sharing from the employee. This generally results in HDHP/HRAs featuring lower deductibles compared to HDHP/HSAs, as the employer is responsible for funding the HRA contributions, thus making up for some of the costs that employees would otherwise pay in out-of-pocket expenses.

The differences in the financial structure of HSAs and HRAs help to explain the contrasts in premium and deductible levels associated with each combination