How Health Reimbursement Arrangements (HRAs) Work
A Health Reimbursement Arrangement (HRA) is an employer- provided health plan in which a single account is established for the retiree and spouse.
- When you enroll in individual medical coverage through Via Benefits, with the ORNL Rx plan, an HRA account will be established and benefit dollars will be allocated to the account.
- Your funds will be pro-rated, based on the month you enroll.
- You can use the funds in your account to be reimbursed for premiums and/or your share of eligible health care expenses during the year. You decide how to use the benefit dollars in your HRA account.
- If you have an eligible spouse, you and your spouse will have a joint HRA account, and both you and your spouse may claim eligible expenses from the total amount in the account.
- Each year, an annual allocation will be made to the account in January. You will also be able to roll over unused benefit dollars from year-to-year, allowing you to accumulate dollars for future use.
Examples of HRA-Eligible Expense Expenses
- Premiums for Medicare Part B and ORNL Rx Plan
- Premiums for Medigap coverage
- Dental and vision premiums
- Dental and vision expenses not covered by insurance
- Out-of-pocket expenses like deductibles, medical co-pays and your share of coinsurance
- For a complete list of HRA-eligible expenses, go to www.irs.gov/publications/p502/index.html or call the IRS at 800-829-3676 and request Publication 502 – Medical and Dental Expenses
ESTABLISHING YOUR HRA
Once the eligible retiree/surviving spouse or spouse enrolls in individual medical coverage through Via Benefits with the ORNL Rx plan, monies will be allocated for each eligible retiree/surviving spouse or spouse. ORNL will allocate each account with benefit dollars. At the beginning of each subsequent year, ORNL will allocate additional benefit dollars to each HRA.
Note: In order to qualify for your HRA, ORNL requires that you enroll in a medical plan through Via Benefits, with prescription drug coverage through ORNL. If you change plans in future years, you must use Via Benefits to find and enroll in a new medical plan, or you will lose your HRA eligibility.