Benefits Administration

Public Service Center
250 4th Street S., Room 100
Minneapolis, MN 55415
(612) 673-3333
benefits@minneapolismn.gov
 

 

Health and Dependent Care Reimbursement
(HRA/VEBA and Minneflex Accounts) 


HRA/VEBA 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.

The City 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. 

Eligible Expenses

Generally, this account can be used to pay for health care expenses incurred by yourself, your spouse or your eligible dependents after you enroll for City-sponsored medical coverage if:

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.

Contributions

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.

The annual limit for contributions to your Minneflex health care spending account is $2,500.  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:

To submit a paper claim form for reimbursement, use the WageWorks Pay Me Back form for health care expenses and the WageWorks Pay Me Back form - Dependent Care for dependent care expenses.

Minneflex Summary Description

HRA/VEBA Summary Description

Last updated Aug 21, 2013