Frequently asked questions (FAQ)
What is the HRA VEBA plan? The HRA VEBA plan is a tax-free health reimbursement arrangement (HRA). Formed in 1990, HRA VEBA Trust is a non-profit, tax-exempt health and welfare benefit trust. HRA VEBA currently provides benefits to over 31,000 public employees and retirees from more than 280 governmental employers in Washington, Oregon, and Idaho. For more information, go to About HRA VEBA Trust. What does “VEBA” stand for? “VEBA” stands for voluntary employees’ beneficiary association. VEBAs are a type of trust instrument used to hold plan assets for the purpose of providing employee benefits. VEBAs are authorized by Internal Revenue Code § 501(c)(9). HRA VEBA Trust offers a health reimbursement arrangement commonly known as HRA VEBA.
A health reimbursement arrangement (HRA) is an account-based health plan. You can use your HRA funds to cover qualified healthcare expenses and premiums for you and your family. Employer contributions, earnings, and withdrawals (claims) are exempt from taxes. Why are HRAs sometimes called VEBAs? Many governmental employers in Washington are familiar with the term “VEBA” and understand it to mean a benefit plan that reimburses healthcare expenses and premiums. These medical reimbursement programs are actually defined by the IRS as HRAs, but are commonly referred to as “VEBA” plans.
Participant benefits; common funding sources
How do I benefit from HRA VEBA? HRA VEBA saves you money. You pay zero tax on contributions from your employer, earnings, and withdrawals (claims). In other words, the money goes in tax-free, is invested tax-free, and comes out tax-free. You may save up to $300 or more in taxes for every $1,000 contributed by your employer (tax savings are approximate and vary by individual). In most cases, your employer contributes funds which would otherwise have been paid to you as taxable income. The most common funding source is unused sick leave cash out funds at retirement.
7. When can I start filing claims? You may file claims at anytime for expenses you incur after becoming a participant. Go to How to file a claim and Tips to expedite your claim for more details. Yes. Go to Definition of Dependent for more details. Common qualified expenses include deductibles, co-pays, coinsurance, and prescription drugs. Go to Qualified Expenses & Premiums for more details. Yes. Medical, dental, vision, tax-qualified long-term care (subject to IRS limits), Medicare Part B, Medicare Part D, and Medicare supplement plan premiums are eligible for reimbursement. Go to Qualified Expenses & Premiums for more details. Yes. Systematic reimbursement of your monthly insurance premiums is available. Standard claims processing takes up to five business days from Meritain Health's date of receipt, plus two business days to execute the necessary investment fund trade(s). If you are not enrolled in direct deposit, remember to allow additional time to receive your paper check in the mail from Meritain Health's service center in Minneapolis.
The two-day investment trade process for approved claims is necessary in order for Meritain Health to transfer your requested funds from your account to VEBA Trust's claims payment account. Your direct deposit (if enrolled) or paper check will be issued after the investment trade(s) are executed. Yes. Direct deposit is available and recommended. You’ll get your money back faster and its more secure than regular mail. No. Your unused account balance carries over from year to year. There is no annual “use-it-or-lose-it” requirement. You may still continue to use your account if you change employers, go on a leave of absence, retire, etc. Access to your account is not affected by your employment status. If you pass away, remaining funds in your account may continue to be used by your surviving spouse and qualified dependent(s) to reimburse qualified healthcare expenses and insurance premiums. If you have no surviving spouse or dependent(s), any remaining funds will be forfeited and redistributed per the terms of your employer's plan. Electronic statements are posted quarterly and are available after logging in to myHRA VEBA online. When you sign up for e-communication (recommended), notification will be e-mailed to you each time a new statement is available online. If you are not signed up for e-communication, paper statements are mailed twice a year in January and July. Administrative and operating expenses are paid by a $1.50/month per account fee, plus an annualized fee of approximately 1.25%. The annualized fee is paid by a reduction to investment earnings or, if there are no earnings, charged as a deduction to participant accounts. Plan expenses include claims processing, printing, postage, legal fees, consulting, local servicing, auditing, etc.
19. How many investment options do I have? You may invest your account using either one of two investment options. With Option A: Do-it-yourself, you can build your own portfolio using funds from seven individual asset classes. Or, you can select any one of four professionally designed pre-mixed asset allocation portfolios available under Option B: Choose a pre-mix. Read the Investment Fund Information brochure for more information. Investment performance is contained in the Investment Fund Overview (updated quarterly). You may change your investment selection(s) up to once each calendar month.
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