Do You Know the Difference Between the HRA and Flex Medical Plan?

Flex Medical Account 

The flex medical account is a pre-tax deduction that is taken out of your paycheck, so it is 100% your money. You can use this money to be reimbursed for your and/or your spouse and/or dependents’ out-of-pocket vision, medical, dental, prescription and/or over-the-counter medical expenses during the benefit plan year (July 1 to June 30) regardless of whether you are on a single or family insurance plan. You can be reimbursed from this account even if the money isn’t in your account because the deduction is being taken from your paycheck. You must be reimbursed from this account first if you have a flex medical account and an HRA; 121 Benefits automatically does this for you. You can only roll over up to $550 annually.   

You can also use your Benny card just like you would a credit card and stock up on over-the-counter medications or for out-of-pocket vision, medical, dental and/or prescription expenses when the provider accepts a credit card as payment. You can also go out to the Flex Store online and spend your money there, as the site tells you if the item requires a prescription in order to use flex money.   

Health Reimbursement Arrangement (HRA)  

The Health Reimbursement Arrangement (HRA) is a contribution made by Heartland AEA into an HRA account for you if you have the Agency’s $2,000 deductible health insurance coverage. Contributions are made in quarterly deposits, and you can use this money to be reimbursed for you and/or your spouse and/or dependents’ out-of-pocket vision, medical, dental, over-the-counter healthcare items and/or prescription expenses, even if you only have single health insurance coverage. 

Since it is a Health Reimbursement Arrangement, you are unable to take any remaining balance with you if you terminate your employment with the Agency. If you are taking a bona fide retirement (which means receiving IPERs), then you continue to have access to your balance until you zero it out or for up to 5 years, whichever occurs first. This is also the only time you can use your HRA funds towards health insurance premiums. When you submit your claims, if there is money available in your account, you are reimbursed. If you submit a reimbursement request for more than is in your account, then every quarter when a contribution is made, you are reimbursed until the claim has been paid in full. The balance automatically rolls over annually and there is no cap.   

Single quarterly HRA contribution: $225.00 ($900.00 annually) 

Family quarterly HRA contribution: $480.00 ($1,920.00 annually)  

If you have any questions, contact Juliette Houseman, Benefits Specialist.