Health Reimbursement Arrangement (HRA)

To help cover the cost of medical expenses, the Exchange Health Reimbursement Arrangement (or Exchange-HRA) is a PEBP-owned account for eligible retirees enrolled in a medical plan through the Medicare Exchange. Eligible retirees receive a monthly contribution to their Exchange-HRA based on their date of hire, date of retirement, and total years of service credit earned with each Nevada public employer.

For detailed information regarding the Exchange HRA, view the Summary Plan Description for Health Reimbursement Arrangement (HRA) Document.

To receive an Exchange-HRA contribution:

An eligible retiree must obtain and maintain medical coverage through the Medicare Exchange (Tricare for Life retirees are not required to enroll in a medical plan; however, they must provide PEBP with a copy of their Tricare for Life and Medicare Parts A and B card).

Retirees can use the Exchange-HRA for reimbursement of qualified health care expenses including premiums for Medicare Part B coverage. Exchange-HRAs may also be used to request reimbursement of qualified health care expenses for eligible tax dependents, such as a spouse.

HRA Contribution:

The monthly tax-exempt contribution for Plan Year 2017 is $12 per month per year of service, beginning with five years ($60) to a maximum of twenty years of service ($240). Individuals who retired before January 1, 1994, will receive a flat $180 per month to the Exchange-HRA. Dependents do not receive their own Exchange-HRA and no additional funds are contributed for dependents.

Exchange-HRA Contribution for Medicare Retirees Enrolled in the Medicare Exchange

Years of Service Contribution
  • Participants who retired before January 1, 1994 receive the 15- year ($180) base contribution.
  • For participants who retired on or after January 1, 1994, the contribution is $12 per month per year of service beginning with 5 years ($60) and a maximum of 20 years ($240).
  • Spouses/domestic partners and surviving spouses /domestic partners enrolled in the Medicare Exchange are not eligible for an HRA contribution.
  • Those retirees with less than 15 Years of Service, who were hired by their last employer on or after January 1, 2010 and who are not disabled do not receive a Years of Service contribution.
  • Those retirees who were hired by their last employer on or after January 1, 2012 do not receive a Years of Service contribution.
  • These amounts do not include the one-time $2 per month per year of service ($360 for a retiree with 15 years of service) contribution approved by the Board for Plan Year 2017 in March 2016.
5 +60.00
6 +72.00
7 +84.00
8 +96.00
9 +108.00
10 +120.00
11 +132.00
12 +144.00
13 +156.00
14 +168.00
15 (Base) +180.00
16 +192.00
17 +204.00
18 +216.00
19 +228.00
20 +240.00

Establishing the Exchange-HRA

PEBP will automatically establish the Exchange-HRA once a retiree has enrolled in a medical plan through the Medicare Exchange. Once established, the Medicare Exchange will send the retiree an HRA Welcome Kit with information on how to use the HRA and claim forms.

Examples of Eligible Medical Expenses for Exchange HRA Retirees

  • Medical insurance premium
  • Dental premium
  • Pharmacy plan premium
  • Dental expenses (e.g., dentures, crowns, fillings)
  • Hearing Aids
  • Doctor visit copays, prescription copays
  • Prescription eyeglasses/contact lenses

Please refer to IRS Publication 502 for detailed information about Medical and Dental Expenses.

**Note: In the event the retiree dies, the Exchange-HRA account of the eligible retiree is immediately forfeited; provided, however, that his or her estate or representatives may submit claims for eligible medical expenses incurred by the eligible retiree and his or her dependents prior to the eligible retiree’s death, as long as such claims are submitted no later than one-hundred eighty (180) days after the eligible retiree’s death.