Health and Dependent Care Reimbursement
(HRA/VEBA and Minneflex Accounts)
The City has established a health reimbursement arrangement plan (HRA) that provides tax-free reimbursement of eligible health care expenses not paid by other insurance. Plan benefits are funded using a voluntary employees’ beneficiary association trust or VEBA. Unused funds in members’ accounts are carried over from year to year to build for future expenses while earning tax-free interest.
Your employer makes HRA/VEBA contributions to employees who enroll in the City of Minneapolis Medical Plan. HRA/VEBA contributions vary based on whether you choose single or family coverage. The monthly amounts are: $90.00 – single coverage, $190.00 – family coverage.
Generally, this account can be used to pay for eligible health care expenses incurred by yourself, your spouse or your eligible dependents after you enroll in the City of Minneapolis Medical Plan. To be eligible for reimbursement fom this account:
- The expense would be deductible by you on your federal income tax return if you paid the expense directly, and
- The expense is not paid by any other health plan or from some other source
Only retired participants can use HRA funds to pay for health insurance premiums, including premiums for Medicare, individual health plans, and COBRA continuation coverage.
Examples of eligible expenses are medical, prescription drug, dental, vision and qualified long-term care expenses including deductions, co-payments, and co-insurance amounts you pay under the City’s medical and dental plans. For a listing of items typically covered by an HRA, review the list of HRA Eligible Health Care Expenses. Over-the-counter drugs are not reimbursable from your HRA/VEBA account unless submitted for reimbursement with a doctor’s prescription and a receipt of payment.
Note: If you elect to participate in the Minneflex health care spending account, eligible expenses are paid from that account before they can be paid from your HRA/VEBA account.
Flexible Spending Accounts (Minneflex Accounts)
The City of Minneapolis Minneflex Plan has two types of accounts. The health care spending account allows eligible employees to pay for certain health care expenses with tax free dollars. Similarly, the dependent care spending account allows eligible employees to pay for certain dependent day care expenses with pre-tax dollars.
If you are eligible to participate, you must decide each year how much you want to contribute to a spending account for the next year.
Beginning in 2015, the annual limit for contributions to your Minneflex health care spending account is $2,550. For the Minneflex dependent care account, you can contribute up to $5,000. These limits are determined by the federal government.
You cannot change or discontinue your contributions mid-year except as appropriate in the event of a change of status (such as your marriage or divorce, birth of a child, etc.)
The flexible spending accounts are a useful tool which can lead to significant tax savings. It is, however, important to plan carefully as these are "use it or lose-it" plans. This means that amounts remaining in your flexible spending accounts at the end of the year are forfeited. You may submit claims for eligible expenses during the calendar year until the following April 15. Any funds remaining in your account will be forfeited and used to pay future administrative expenses.
Claims and Balance Information for HRA/VEBA and Minneflex Accounts
How to access funds from your FSA and HRA/VEBA accounts:
- Your WageWorks Health Care Card can be used only for your HRA/VEBA and Health Care FSA accounts (not dependent care) and only for eligible expenses incurred in the current year. Use the debit card for prescriptions, payments to doctors or dentists, eyeglasses, and other eligible health care expenses. There will be instances when you will need to provide proof of purchase, so keep your receipts!
- Pay Me Back is an option for HRA/VEBA, Health Care FSA, and Dependent Care FSA. In this option, you pay for the expense with your own funds and then request reimbursement from your FSA or HRA/VEBA. Claims can be submitted at www.wageworks.com. Paper claim forms are also available.
- Pay My Provider is an option you can use for HRA/VEBA, Health Care FSA, and Dependent Care FSA. Payment is sent directly to your provider from your online WageWorks account. Pay My Provider claims can only be submitted online at www.wageworks.com.
Last updated Dec 15, 2014