Health Reimbursement Account

Health Reimbursement Account (HRA) is an employer sponsored account that only the employer can contribute to. The State Employee Health makes contributions to the HRA on a quarterly basis. If you are a non-state employee, you will receive a monthly HRA contribution.

The HRA can be used to help you pay for qualified medical, dental or vision expenses. These expenses include dental visits, prescription drugs, eyeglasses, contact lenses and chiropractor.

HRA contribution amounts are listed below:

Your employer owns the arrangement and determines the scope of how it is set up and used, including the amount you and each employee will receive. The HRA is not portable; if you change employers, the arrangement and any funds stay with the employer.

Your employer owns the arrangement and determines the amount employees will receive.

The HRA plan benefits participants by allowing them to be reimbursed up to a specified amount each year for certain eligible health care expenses. Each dollar that goes into the plan is provided by the employer for the purpose of health care expenses, so the benefit is free from federal, state and Social Security taxes.

Any employee enrolled in Plan C or N may elect to have an HRA. Employees who are not eligible to contribute to a Health Savings Account (HSA)because of one of the following reasons will need to elect the HRA option: 

• Medicare enrollment
• TRICARE enrollment
• Concurrent enrollment in another health plan not considered a High Deductible Health Plan
• You are eligible to be claimed as a dependent under your parent’s tax return
• You have dependent children between ages 23-26 (member may choose to enroll in either the HSA or an HRA in this situation)

Employees selecting Plan J will also have an HRA for any HealthQuest Reward dollars they earn through completing eligible HealthQuest activities.

Reimbursements made from your employer through the HRA are not considered part of your income and are not taxed. Contributions made to your HRA are 100 percent employer-funded, free of federal, state and FICA taxes. The distributions for medical expenses are also tax free. An HRA plan may save you money through lower premiums and tax-free medical reimbursements.

The HRA can reimburse for eligible medical expenses just like with the HSA and FSA. Some examples of medical expenses that you can spend your HRA funds for include:

•  Deductibles and Coinsurance
•  Dental, Drug and Vision expenses
•  Over the Counter medications, such as aspirin, cold medicines, antacids and cough supplements if you have a prescription from your doctor

The HRA is not portable and should you terminate coverage with the SEHP prior to the end of the plan year, you will have sixty (60) days from your last date on SEHP coverage to file any claims incurred while you were covered that plan year.

Yes, The IRS requires that all transactions be validated, including any debit card transactions.

Throughout the year, you should submit copies of your receipts and documentation for prescriptions and health-related expenses (including debit card transactions), in order to receive reimbursement from your account or to verify a claim made with your debit card.

Yes. You should keep your original receipts and documentation for prescriptions and health related expenses for all transactions (including payment card transactions), so you’ll have them if needed to verify a claim. The IRS requires that all transactions be validated, including the payment card  transactions. If we need additional documentation, we’ll contact you and you’ll be asked to provide documentation with receipts.

Failure to respond promptly to a request can result in the expense being labeled as “ineligible,” in which case, you would be obligated to reimburse your account through MetLife. In addition, your payment card could become deactivated.

Participants will have sixty (60) days from the end of a plan year (December 31st) to file any claims incurred during that plan year.

Over-the-counter medicines and drugs require a prescription from your doctor in order to be reimbursed through an HRA.