1. Health Reimbursement Arrangements
REEP Retiree Solution
Health Reimbursement Arrangements

2. What is an HRA?
Health Reimbursement Arrangement (HRA) is considered a Defined Contribution health care plan that may provide reimbursements for medical & dental insurance premiums and other eligible health care expenses
HRAs are considered a supplement to the employee’s current Defined Benefit Plan and may be used after termination

3. What is an HRA? HRAs have been available since 2002
HRAs are funded by the employer only and employee contributions are not permitted
HRAs provide triple tax savings with tax free deposits, tax free accumulation and tax free reimbursements

4. Utilizing an HRA as an Early Retiree
REEP Group Plans
Covered CA Plans
Private Exchange Plans
…Can match Covered CA plans and costs, plus provide access to many other plans
Group Pays Carrier -
No Need for HRA
Subsidy vs. HRA Contribution
Retiree Pays Carrier Reimbursed from HRA
If retiree qualifies for a subsidy, they cannot have an HRA

5. Plan Design Eligibility: Contributions:
All early retiree employees enrolled in group health coverage through employer’s sponsored group health plan
Contributions:
The District will contribute a set dollar amount per month for each full-time employee participating in the HRA
Unused amounts carry over from year to year
At time of termination unused account balances stay with the employee, although no new contributions will occur

6. Plan Design Reimbursement for Employees:
Reimburse for deductibles and co-pays not covered by the District’s current health care plan
213(d) eligible health care expenses
No taxation to participant
125 Plan contributions must be used first, before HRA, due to FSA “use it or lose it” provision

7. What are Eligible Expenses?
Common Qualified Claims

8. Claims Debit card Acceptable Documentation
Explanation of Benefits (EOB)
Co-pay receipts
Itemized Bill Name of Provider
Patient
Cost
Date
Description of service

9. A Great Value
$8 per month
Deducted from the HRA account

10. Administration
MidAmerica Administrative Solutions is a national leader in providing HRA services
Live telephone response is provided Monday through Thursday 5:30 a.m. to 5:00 p.m. and Fridays 5:30 a.m. to 3:00 p.m
24/7 web support is provided

11. Funding American United Life (AUL) Fixed group annuity contract
AUL is rated A+ (Superior) by A.M. Best
Current interest rate is 1.75%

12. Consultant

13. Questions?