is the Health Reimbursement Account Plan (HRA)?
Medical Plan is a medical plan with a Health Reimbursement Account funded by
Roanoke City Public Schools. This
account is used on an employee’s behalf by UnitedHealthcare (UHC).
an employee enrolls in the HRA Medical plan, there is a Health Reimbursement
Account, (HRA) that is a part of the plan. This HRA is a tax-exempt account established
by Roanoke City Public Schools and it can be funded only by employer
contributions, and not through a Section 125 cafeteria plan. The contributions
to the fund are excluded from the employee's gross income, and are not subject
to FICA or FUTA taxes. The disbursements from the fund used to pay for
qualifying medical expenses are also excluded from the employee's gross income.
assets in the fund, HRA dollars, can only be used to pay the eligible medical
expenses of the employee, the employee's enrolled spouse, and the employee's enrolled
dependents. Roanoke City Public Schools’ HRA allows expenses that apply to the
deductible along with coinsurance, the
out-of-pocket maximum, and Rx co-pays as eligible expenses to be paid
for by the HRA.
the Health Reimbursement Account Works
HRA Dollars- These are dollars provided by Roanoke City Public
Schools to an employee’s HRA account. HRA Dollars are only distributed to
providers by UnitedHealthcare.
HRA Dollar Access
Point- The HRA Dollar Access Point is
reached when an employee incurs $1,000 in eligible patient expenses. UnitedHealthcare
will know when to distribute HRA dollars because they track employee expenses
and know when an employee reaches the HRA Dollar Access Point, $1,000, in
eligible patient expenses. After reaching the $1,000 Access Point, eligible
patient expenses begin to be paid by UnitedHealthcare with dollars available in
Only Coverage: Each plan year, $1,000
HRA dollars are available in the HRA. The maximum HRA dollars an
employee can accumulate in the HRA in a plan year is $2,000. This includes the
plan year HRA dollars ($1,000) and unused HRA dollars rolled over from the year before (maximum of $1,000). An
employee may use any or all HRA dollars available once the access point is met.
If an employee terminates employment, HRA dollars are not portable.
+ Child, Employee + Spouse, and Employee + Family Levels of Coverage: Each plan year, $2,000 HRA dollars are available.
maximum HRA Dollars an employee can accumulate in a plan year is $4,000. This
includes the plan year HRA Dollars ($2,000) and unused HRA dollars rolled over from the year before
(maximum of $2,000). Whichever family member reaches the access point first may
use any or all HRA dollars available in the HRA account. If an employee
terminates employment, HRA dollars are not portable.
the maximum total deductible for the family plan is $4,000, it is possible that
if the first family member reaches the access point of $1,000 and uses all
available HRA dollars, and a second family member reaches the access point, of
$1,000, they will be required to meet the full deductible of $2,000 before
qualifying for co-insurance of 80%
paid by UHC and 20% paid by the member.