For Certain Active Employees and Retirees Enrolled in the CD PPO HDHP

What is a PPO Health Reimbursement Arrangement?

The PPO Health Reimbursement Arrangement (PPO-HRA) is an employer-owned account that PEBP will establish on behalf of retirees and active employees not eligible for a Health Savings Account on July 1, 2012. 

The PPO-HRA works similar to a Health Savings Account (HSA) and may be used to pay for qualified health care expenses for the participant and members of the participant’s tax-family. One major difference between the PPO-HRA and the HSA is the PPO-HRA is a PEBP-owned account established on behalf of eligible participants.  Employee/retiree contributions are not allowed to the PPO-HRA and if the employee/retiree terminates coverage in the CD PPO HDHP any balance in the PPO-HRA is returned to PEBP.

PPO-HRAs are tax-exempt accounts that a participant can use to pay for health care expenses such as deductibles and coinsurance related to medical, dental and prescription drugs.  See Publication 502 at www.irs.gov  for a listing of qualified healthcare expenses. PPO-HRA funds may not be used to pay for PEBP premiums.

PPO Health Reimbursement Arrangement (PPO-HRA)  for Retirees and Certain Active Employees Enrolled in the CD PPO HDHP
Plan Year 2013 contribution is based on the participant being eligible for coverage on July 1, 2012. Note: New hires and covered dependents receive a prorated contribution based upon their coverage effective date and the number of months remaining in the plan year.	Individual (Participant Only Coverage) Base Plan Year 2013 Contribution	Additional one-time supplemental contribution for participants on the CD PPO HDHP with coverage effective July 1, 2012 only	Additional contribution for primary participants age 45+ on June 30, 2012 on the CD PPO HDHP with coverage effective July 1, 2012 only
	$700	$400	$200
	Base Plan Year 2013 contribution for dependent(s) (maximum 3 dependents)	Additional one-time supplemental contribution for dependent(s) on the CD PPO HDHP with coverage effective July 1, 2012 (maximum 3 dependents)
	$200	$100