Understanding Your Reimbursement Account or HRA
This article applies to you if you have a Via Benefits reimbursement account (sometimes known as a Health Reimbursement Arrangement)*.
The article discusses how your account is set up, taxes and loss of funding.
How Your Account is Set Up
Via Benefits sends you a Reimbursement Guide within two weeks of your plan's effective date if you're eligible for a reimbursement account.
A reimbursement account is set up by your former employer or benefits provider with a specific contribution of funds that can be used to reimburse you for qualified health care expenses. Only your former employer can contribute funds to this account. Individuals can't add funds to their accounts.
Your former employer indicates specific criteria you must meet to qualify for your funding and determines what incurred expenses are eligible for reimbursement from these funds. To learn how to access information about qualifying for funding, read Locating Your Reimbursement Account Details and Qualificaiton Requirements. If your former employer hasn't set restrictions on what's reimbursable, read Eligible Medical Expenses to verify what expenses may be eligible.
Your former employer also determines if funds remaining in your account at the end of the year roll over to the next year. Read Reimbursement Request Deadlines to learn more.
Via Benefits has a few suggestions to improve your experience while using your reimbursement account, such as automating your premium reimbursement, setting up direct deposit, and updating your notification settings for email and text.
Who May Request Reimbursement
Who may request reimbursement from your account is determined by your former employer. The employer may allow:
Only the account holder
The account holder and named dependents
The account holder and any eligible dependents
Visit irs.gov to confirm whom you may claim as a dependent.
The summary plan description provided by your former employer may provide more information about the account.
Joint and Separate Reimbursement Accounts
Joint Account
A joint reimbursement account means you and your spouse share one account. All of the contributed funds for both you and your spouse, if applicable, go into this shared account. The balance reflects the current available funds for both of you together.
The primary participant is the account holder. All communications regarding your reimbursement account are addressed in the name of the account holder. Reimbursement account access, available on the website or mobile app, and on reimbursement request forms, is in the account holder's name. The individual serviced is the person for whom the expense was incurred. Any approved reimbursements for either you or your spouse are taken from your joint funds until they're exhausted. If you sign up for direct deposit, all reimbursements from a joint account go into the same bank account (selected by you).
Separate Accounts
Having separate reimbursement accounts means you and your spouse each receive a funding contribution and your funds are put into separate accounts. You each submit your reimbursement requests through your own account. Reimbursement account access, available on the website or mobile app and reimbursement request forms, is in the account holder's name. Typically, you can't submit reimbursements on your spouse’s account when you have a separate account. Go to your reimbursement account to view your account information.
Note: If you receive your Reimbursement Guide and can't see your funding information on the mobile app or website, please contact us.
Taxes
A reimbursement account isn't included in your income. The account is tax free, meaning you don't report it as income or pay taxes on it.
Former employers, voluntary employees' beneficiary association (VEBA) trusts and state benefit connectors often choose to provide a reimbursement account to their retirees because it's a tax-free account. If they were to issue a check to you each month instead, it would be taxable income. Because the funds are in a reimbursement account managed by a third party (e.g., Via Benefits) and used only for qualified medical expenses, you don't have to pay any additional taxes on your annual return.
We encourage you to speak with a tax professional if you have additional tax-specific questions regarding your reimbursement account.
Loss of Funding
We notify you when you're at risk of losing funding. In many cases, this means your former employer established requirements to qualify for a reimbursement account, which you no longer meet. For example, your former employer may require you be enrolled in a medical plan or prescription drug plan through Via Benefits Insurance Services.
When a loss of funding occurs, it means Via Benefits has received notification you may not be meeting your former employer’s requirements, which causes the funding amount to change. The reimbursement account may no longer receive funds to pay for your health care expenses. the funding amount may have decreased or additional actions are required to maintain funding. Depending on the situation, funding that has already been placed in your account may also be reversed.
There are several events that can cause a loss of funding, for example:
You stopped paying your premiums, and your health plan was canceled
The account holder passed away
You canceled your supplemental Medicare coverage and returned to Original Medicare Parts A and B
You enrolled in a health plan with an insurance carrier or independent agent, not Via Benefits
An error occurred with the reporting to Via Benefits
You went back to work and lost eligibility
Your employer changed the eligibility status for your reimbursement account
If you receive a loss of funding notification from Via Benefits, and the loss of funding wasn't intentional or you believe it has occurred in error, please contact us.
Note: If you receive your Reimbursement Guide and can't see your funding information on the mobile app or website, please contact us.
*Via Benefits reimbursement accounts are administered by Extend Health, LLC.