Health Reimbursement Arrangement
The HealthCare FSA is a tax-free account that allows a person to pay for essential health care expenses that are not covered or are partially covered by your medical, pharmacy, dental and vision plans. The FSA plan year is July 1 through June 30 of the following year. Flexible Spending Account open enrollment is usually held in May each year. To participate in an FSA, you must enroll within 60 days of your hire date or during open enrollment each year for the upcoming plan year. For more information regarding FSAs contact UMR at 1-888-763-8232.
The FSA is a use it or lose it account and the HSA/HRA rolls over from year to year, month to month. The FSA allows for a limited amount of funds to roll over from year to year.
An HSA is a Health Savings Account that also receives tax-free contributions from PEBP but also allows the participant to make voluntarily contributions to their HSA through pre-tax payroll deductions. If you leave State service the money will stay with you until it is spent by you. Not everyone is eligible for an HSA.
An HRA is a Health Reimbursement Arrangement with only PEBP contributions. You are not eligible to make your own contributions to this account. If you leave State services this money will revert to the State. Everyone enrolled in the CDHP PPO plan is eligible for an HRA.
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes. You are also responsible for saving all receipts as verification of expenses in the case of an IRS audit.
The Medicare Exchange HRA is a pass-through account for Medicare retirees enrolled in a medical plan through the Medicare Exchange. Contributions to the Medicare Exchange are determined by the years of service and date of retirement of eligible retirees. HRA funds may be used to reimburse retirees for qualified medical expenses, health plan premiums, and Medicare Part B premiums.
I am enrolled in the Medicare Exchange with an HRA. How long do I have to request reimbursement from the date-of-service?
The Exchange-HRA has a timely filing period of 365 days from the date of service.
Health Reimbursement Arrangements (HRAs) are PEBP-owned pass-through accounts established on behalf of eligible CDHP primary participants. HRA funds may be used to pay for qualified medical expenses.
My spouse is a state employee with an HRA. I am a new employee and plan to enroll in the CDHP with an HSA, am I eligible to contribute to an HSA?
If your spouse has an HRA, you are disqualified from establishing and/or contributing to an HSA per the IRS.