Health Reimbursement Arrangements (HRA)

What Is an HRA?

An HRA is an IRS-approved tax-advantaged account that the State can contribute to, and where you can use the funds to reimburse yourself for qualified medical expenses such as health insurance premiums and out-of-pocket costs.

How Does an HRA Work?

If you qualify for a State subsidy, and you have purchased a Medigap or Medicare Advantage plan through Via Benefits, you will receive your subsidy in the form of monthly State contributions to your HRA. (See below for the actual subsidy amounts.) You can then use the funds in your HRA to reimburse yourself for qualified expenses.

Retiree HRA allocation amounts are determined according to statutory formula. A benchmark Medicare Supplement plan is used to set HRA allocations according to subsidy entitlements. The retiree's subsidy percentage is applied to the age-based rate of the benchmark plan, and the resulting amount is allocated to the retiree's HRA.

The benchmark plan is the AARP Plan F underwritten by UnitedHealthcare. Despite the fact that new retirees may not be able to purchase this plan,* the State is keeping the AARP Plan F as its benchmark plan for 2022.

* Just like all other Plans F and C, the AARP Plan F fully covers the Medicare Part B deductible. Pursuant to federal legislation effective January 1, 2020, Medigap plans sold to people who are newly eligible for Medicare aren’t allowed to cover the Part B deductible. Because of this, Plans F and C aren’t available to people newly eligible for Medicare on or after January 1, 2020. If you already have or were covered by Plan F or C before January 1, 2020, you can keep your plan. If you were eligible for Medicare before January 1, 2020, but not yet enrolled, you may still be able to buy one of these plans that cover the Part B deductible. Plan F and Plan C are closed to new enrollees that were not previously eligible for Medicare as of January 1, 2020.

How Do I Enroll?

Please contact Via Benefits—the State's HRA administrator—to enroll in an HRA, learn more detail on how the HRA process works, as well as find a complete list of eligible medical expenses:

Monthly HRA Allotments**

Effective 6/1/2022
Age Plan F 100% Subsidy 90% Subsidy 80% Subsidy 70% Subsidy 50% Subsidy
Under 65 $180.78 $180.78 $162.70 $144.62 $126.55 $90.39
65 $180.78 $180.78 $162.70 $144.62 $126.55 $90.39
66 $188.52 $188.52 $169.67 $150.82 $131.96 $94.26
67 $196.27 $196.27 $176.64 $157.02 $137.39 $98.14
68 $204.02 $204.02 $183.62 $163.22 $142.81 $102.01
69 $211.77 $211.77 $190.59 $169.42 $148.24 $105.89
70 $219.51 $219.51 $197.56 $175.61 $153.66 $109.76
71 $227.26 $227.26 $204.53 $181.81 $159.08 $113.63
72 $235.01 $235.01 $211.51 $188.01 $164.51 $117.51
73 $242.76 $242.76 $218.48 $194.21 $169.93 $121.38
74 $250.50 $250.50 $225.45 $200.40 $175.35 $125.25
75+ $258.25 $258.25 $232.43 $206.60 $180.78 $129.13

** Generally, if you do not enroll in a Medigap policy within 6 months of your 65th birthday or your Medicare Part B effective date, whichever is later, you may be charged a higher rate than the standard rates. HRA allocation amounts are still based on the standard rates.