Understanding your Retiree Health Reimbursement Arrangement (HRA)
Rochester ISD #535 By: Adam Kuck
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
What is a Retiree HRA? • Interest-bearing retirement account in your name • Employer deposits money • Money invested in a fixed annuity* • Credited interest rate is guaranteed not to fall below 1.60% through 2017** • Use for medical expenses and premiums Guarantees are subject to the claims paying ability of American United Life Insurance Company. * American United Life Insurance Company’s unallocated group Fixed Annuity. **Not FDIC insured. Based on the claims-paying ability of the investment provider.
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Why Use an HRA to Pay for Medical Expenses and Premiums? • Contributions not taxed! • Distributions not taxed! • Interest is not taxed!
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
How the Tax Savings Work Paycheck $10,000 - $765 (FICA Tax) - $2,500 (Income Tax) = $6,735
HRA $10,000 - $0 (Tax) = $10,000
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
HRA: Your Rainy Day Fund • If you need it, it’s there • If you don’t need it, it rolls over every year • And grows…tax-free • Expenses do not expire - you can submit expenses incurred after you became eligible to participate in the plan at any time Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
What medical expenses and premiums are eligible for reimbursement with my HRA? • Physician visits • • • • • • • •
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Prescription medication Dental care Nursing home care Eye care Co-pays or deductibles Medical insurance premiums Etc… Visit www.midamerica.biz for additional details
Qualifying Insurance Premiums • Health, Dental, Vision and Long-Term Care Insurance • Medicare Part B, Part C, and Part D and Medicare Supplements • Individual Policies on and off the Exchange (MNSure) • Employer-Sponsored Group Health Coverage (as long as not paid with pre-tax payroll deductions) Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Who qualifies for reimbursements? • You • Spouse • Qualifying dependents • Surviving spouse & qualifying dependents Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Online Claims www.midamerica.biz Click on Submit Claims Upload documentation 7-10 business days for reimbursement • $2.50 fee for each reimbursement capped at 6 distribution fees per year • • • •
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Paper Claims •
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Claim Form – Complete Section 2.1 for one-time reimbursements or Section 2.2 for Premium Expense Claims Check “Recurring” to establish a recurring monthly premium reimbursement Include receipts or other documentation Mail, email, or fax 7-10 business days for reimbursement $5.00 fee for each reimbursement capped at 6 distribution fees per year
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
What type of documentation is needed for premiums? •
Premium Notice from your insurance company, which includes: • Premium amount • Effective date of coverage • Name of insured – you, your spouse, or another qualifying dependent
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Insurance premiums must be paid before reimbursement
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Recurring premium reimbursements remain in effect for 12 months at which time a new claim form or online submission and documentation is required
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
What type of documentation is needed for medical expenses? • Explanation of Benefits (EOB) • Co-Pay receipts • Invoices if no insurance • Reimbursement can be requested before medical expenses are paid
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
Have Questions? •
See the Plan Highlights and visit www.myspokeskids.com for additional plan information • http://www.myspokeskids.com/schooldistrict/?district=3483
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Check your account activity anytime at www.midamerica.biz – your initial login is your Social Security number and your password is your last four digits of your Social Security number
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Address change, claims, forms, statements, account inquiries:
[email protected] or 855.329.0095
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Send all forms to: MidAmerica Administrative & Retirement Solutions Attn: HRA Department P.O. Box 24927 Lakeland, FL 33802 Fax: 863.577.4460 Email:
[email protected]
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For investment or plan information related questions, contact your National Insurance Representative at 800.627.3660 • Adam Kuck –
[email protected]
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
All group variable annuity contracts are issued by American United Life Insurance Company® (AUL), One American Square, Indianapolis, IN 46206-0368, 800.249.6269. Registered group variable annuity contracts are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 46204, 877.285.3863. MidAmerica and National Insurance Services are not affiliates of American United Life Insurance Company® (AUL) or OneAmerica Securities and are not OneAmerica companies. Neither American United Life Insurance Company® (AUL), OneAmerica Securities, Inc. nor their representatives provide tax or legal advice. For answers to your specific questions, please consult a qualified attorney or tax advisor.
Products and financial services provided by American United Life Insurance Company®, a OneAmerica® company.
