Presentation on theme: "HRA 101 A guide to Health Reimbursement Accounts at Kaiser Permanente JANUARY, 2011."— Presentation transcript:
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
What is 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
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 service or 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 if they 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)