160 likes | 414 Views
HRA 101 A guide to Health Reimbursement Accounts at Kaiser Permanente JANUARY, 2011. Overview. Effective January 1, 2010 Offered to eligible employees represented by Coalition Unions Tax-free reimbursement for out-of-pocket eligible medical, dental and vision care expenses
E N D
HRA 101 A guide to Health Reimbursement Accounts at Kaiser Permanente JANUARY, 2011
Overview • Effective January 1, 2010 • Offered to eligible employees represented by Coalition Unions • Tax-free reimbursement for out-of-pocket eligible medical, dental and vision care expenses • Funded with 80% of value of unused sick leave as of employee’s termination date • Retiree medical eligibility, medical plan and benefit levels are not affected by the HRA
The Health Reimbursement Account allows retirees to pay for out-of-pocket qualified medical, dental, vision, and hearing care expenses. The HRA also covers: • Expenses of eligible dependents • Premiums paid to a Kaiser Permanente medical plan What is the HRA?
Who can participate? Employees represented by LMP Unions participating in: • Earned Time-Off program, or • Work/Life Balance Time-Off program Participants must meet these requirements:* • 55 or older • 15 years of serviceor more** • Eligible for KP medical coverage on last day of employment • Must be in employee groups that participate in the HRA • Alternate Compensation program included * Age and years of service waived for Disability Retirement ** As defined under the KP-sponsored defined benefit plan, or the pension plan under the union trust as applicable.
Who can participate? HRA-convertible sick leave hours vary according to your collective bargaining agreements. Different groups of employees: • Employees in the Attendance program • Employees with an “annual refresh’’ provision to their sick leave program • Employees in the Extended Sick Leave program • Georgia region employees, who follow a unique system of sick leave accrual Employees represented by UFCW Pharmacy must be eligible for the union-sponsored medical plan.
Eligible dependents • Your legal spouse • Your children under age 26 • An individual who is a tax dependent as defined in the Internal Revenue Code and who would be eligible to be covered as a dependent under a KP medical plan or medical benefits through your union trust. • Domestic partners, same-sex spouses and their children are eligible dependents for the HRA plan ifthey qualify as your tax dependent as defined under the Internal Revenue Code.
Eligible expenses • IRS determines which expenses are eligible (qualified) for reimbursement. • May not also claim the expense through your health care plan, insurance program or as an income tax deduction. • Consult a tax advisor for tax implications.
Eligible expenses: examples • Premiums • Dental insurance premiums and co-payments • Long-term care insurance premiums • Medicare • COBRA • Equipment and Supplies • Dental implants, supplies • Wheelchair • Care and Treatment • Acupuncture • Chiropractic care • Hearing exams and treatment
Ineligible expenses: examples • Baldness treatments or hair transplants • Dancing lessons, swimming lessons • Exercise equipment • Herbal and holistic drugs or remedies • Special diet foods • Vacation expenses (even if recommended by a doctor)
How is the HRA established? • On termination or retirement: • HRA-convertible sick leave hours converted at 80% of value • Kaiser Permanente deposits into HRA • No employee contributions allowed • $100 minimum required to establish account • No cost for this new benefit • Automatic participation, if eligible • No opt-out option
HRA transfers: Work/Life Balance time-off program • Banked Sick Leave (BSL) • Unused hours accrued in 2006 and thereafter converted at 80% of value • Deposited into HRA • No conversion to credited service for post-2005 BSL hours
HRA transfers: Earned time-off program • Extended Sick Leave (ESL) • Effective first pay period of 2010, employees have two ESL banks: • Current ESL bank • Pre-2010 ESL bank • ESL hours beginning first pay period 2010 go into current ESL bank. • Unused ESL hours last pay period 2009 go into pre-2010 ESL bank. • Accrued, unused ESL in current ESL account converted at 80% of value and deposited into HRA. • No credited service for unused post-2009 ESL hours
Claims guidelines • Claims processed weekly • No limit on number of claims • No minimum/maximum dollar amount for claims • Submit claims within 60 days • Unused funds carry over each year
Account closures • HRA account closes if: • Account balance is $0 • Account is abandoned • Death of employee, with no surviving eligible dependents • Death of surviving eligible dependents • If during the termination or retirement process, you are deemed ineligible for the HRA
Account suspension or reactivation • Account suspended • If you are rehired and return to work at Kaiser Permanente in any capacity • Account reactivated • When you terminate again: No minimum balance required
Contact information • For HRA detailed questions, covered expenses and claims: • Ceridian Customer Service • Monday-Friday, 5 a.m.-5 p.m. Pacific Time • 1-866-370-2534 • www.ceridian-benefits.com • For HRA general questions: • My HR Web site • http://insidekp.kp.org/myhr • Human Resources Service Center (HRSC) • 1-877-4KP-HRSC (1-877-457-4772)