An HRA account with Via Benefits is a tax-advantaged reimbursement account, provided by a former employer or pension plan, designed to help eligible retirees and their covered dependents pay for qualified medical expenses, including health insurance premiums.
Understanding Health Reimbursement Arrangements (HRAs)
A Health Reimbursement Arrangement (HRA) is an employer-funded, tax-advantaged health benefit plan that reimburses employees for out-of-pocket medical expenses and/or insurance premiums. Unlike Health Savings Accounts (HSAs), HRAs are entirely employer-funded, and the funds typically remain with the employer if the employee leaves the company, unless the plan design specifies otherwise (as is often the case for retiree HRAs).
How Via Benefits Utilizes HRAs
Via Benefits, a leading provider of retiree exchange services, administers these HRA accounts on behalf of former employers or pension plans. For retirees using the Via Benefits marketplace, the HRA serves as a crucial financial tool to manage healthcare costs in retirement.
Key aspects of an HRA account with Via Benefits include:
- Employer-Funded: Funds are contributed by your former employer or pension plan, not by you.
- Tax-Advantaged: Reimbursements are typically tax-free when used for qualified medical expenses.
- Flexible Spending: Funds can be used for a wide range of eligible healthcare costs.
- Rollover Capabilities: Unused HRA funds often roll over from year to year, providing a cumulative benefit.
Specifically, Via Benefits HRAs are primarily designed for:
- Pre-Medicare Benefit Recipients: These individuals can use the HRA funds to reimburse premiums for health plans purchased through or outside the Via Benefits marketplace, as well as other qualified medical expenses.
- Medicare-Eligible Benefit Recipients: While many Medicare-eligible individuals benefit from Automatic Premium Reimbursement for their Medicare plan premiums, an HRA can also be used by Medicare-eligible Benefit Recipients if their plans do not participate in Automatic Premium Reimbursement. This ensures that even those whose premiums aren't automatically handled can still use HRA funds for premium reimbursement and other eligible medical costs.
Who Can Benefit from a Via Benefits HRA?
Eligibility for an HRA account with Via Benefits is determined by your former employer or pension plan. Generally, these accounts are established for:
| Eligibility Group | Primary Use Case (Via Benefits HRA) |
|---|---|
| Pre-Medicare Retirees | Primarily for reimbursement of health insurance premiums and other qualified medical expenses. |
| Medicare-Eligible Retirees | Primarily for reimbursement of Medicare Part B, Part D, Medicare Advantage (Part C), or Medicare Supplement (Medigap) premiums, and other qualified medical expenses, especially if their chosen plan does not support Automatic Premium Reimbursement. |
| Covered Dependents | Spouses, domestic partners, and eligible dependents often have access to the HRA funds for their qualified medical expenses. |
Common Uses of Via Benefits HRA Funds
HRA funds can be used to reimburse a variety of qualified medical expenses as defined by IRS regulations. Common uses include:
- Health insurance premiums (individual plans, Medicare Parts B, D, Medicare Advantage, Medigap plans)
- Dental and vision insurance premiums
- Deductibles, co-pays, and co-insurance
- Prescription drugs
- Out-of-pocket medical services (e.g., doctor visits, hospital stays, lab tests)
- Dental and vision care services (e.g., fillings, cleanings, eyeglasses, contact lenses)
- Certain over-the-counter medical supplies (with a prescription or for certain conditions)
Accessing Your HRA Funds Through Via Benefits
Via Benefits streamlines the reimbursement process, making it easy for participants to submit claims and receive funds.
- Incur an Expense: Pay for a qualified medical expense or health insurance premium.
- Submit a Claim: Provide Via Benefits with proof of the expense (e.g., explanation of benefits, premium statement, receipt) and a completed reimbursement request form. This can often be done online through your Via Benefits account, via mail, or fax.
- Review and Approval: Via Benefits reviews your claim to ensure it meets IRS guidelines and plan rules.
- Reimbursement: Once approved, funds are typically reimbursed directly to you via direct deposit or check, depending on your preference.
