A friend recently purchased a Peloton bike and saved $360 in the process.

And no, she didn’t find a coupon on Google…

She used pre-tax income through her HSA.

Here’s the simple math:

• $1,506 (pre-tax income with an estimated 24% in taxes)
• $1,145 (HSA contribution)
• = $361 saved in taxes

It’s one of those small shifts that can make a surprisingly big difference.

Let’s break down two of the most underrated savings tools in healthcare:
HSAs (Health Savings Accounts) and HRA105s (Health Reimbursement Arrangements).

(Important disclaimer: This is not financial or tax advice.)

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What is an HSA? (health savings account explained)

Think of an HSA as a healthcare piggy bank…with some serious perks.

• It’s yours to keep. You take the account with you, even if you change jobs.
• Tax advantages. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified expenses are tax-free.
• Funds roll over. There’s no “use it or lose it” pressure at the end of the year.
• Separate account. It functions like a dedicated bank account for healthcare spending.
• Eligibility required. You need to be enrolled in a high-deductible health plan (HDHP), which typically comes with lower monthly premiums.

What can you use an HSA for?

Many people only think of doctor visits, but HSAs can be used more creatively than that.

Here are a few examples:

• Acupuncture, massages, or even an ergonomic office chair
• Sunscreen, cold and flu medicine, and contact lenses
• Travel expenses related to medical care (even rides to appointments may qualify)

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What is an HRA105? (for business owners and entrepreneurs)

An HRA105 is a powerful, often overlooked tool—especially for small business owners.

• You fund it. Business owners set aside money to reimburse themselves (and optionally employees) for qualified medical expenses or premiums.
• Not portable. If an employee leaves, the funds stay with the business.
• Flexible design. You decide who is covered and what expenses are eligible.
• Alternative to group plans. It allows small businesses to offer health benefits without a traditional group insurance plan.

How business owners use HRA105 accounts

Some common ways this shows up in practice:

• Covering out-of-pocket expenses like copays, prescriptions, or orthodontics
• Reimbursing individual health insurance premiums
• Funding wellness-related expenses for employees, such as gym memberships or mental health support

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HSA vs. HRA: which one is right for you?

Both HSAs and HRAs can help reduce healthcare costs, but they work differently.

• HSAs are typically better for individuals enrolled in high-deductible plans who want long-term, tax-advantaged savings.
• HRAs are often a strong fit for business owners who want flexibility in how they structure healthcare benefits.

The right choice depends on your situation, your business (if applicable), and how you prefer to manage healthcare expenses.

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The bottom line

These tools can feel confusing at first, but when used correctly, they can lead to significant savings over time.

Sometimes it’s not about finding a better “deal” on healthcare—it’s about using the systems that already exist more strategically.

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Need help choosing the right option?

If you’re a small business owner, entrepreneur, or consultant trying to make sense of your options, it helps to look at your situation holistically.

There isn’t a one-size-fits-all answer—but there is usually a smarter way to structure things.