Health Reimbursement Accounts

New Health Reimbursement Account

Health Reimbursement Account = HRA

• Allows reimbursement for out of pocket medical expenses such as office visit and prescription co-pays.
• These contributions are not taxed going in or coming out.
• Benefits are not taxed! Complete avoidance of federal and state taxation means keeping more dollars in the pockets of union members and improving the lives of union families.
• Each eligible participant shall have an account established in his/her name.
• Participants and their dependents will have access to the benefits of this account and the balance will carry over each year if not used.

What are Health Reimbursement Accounts?

Health Reimbursement Accounts are set up for each participant once contributions are made on their behalf to the Health Fund. The contributions that are sent in on your behalf from your employer are pre-tax employer contributions.

Your plan funds may be used toward qualifiedout-of-pocket health care expenses. Out of pocket health care expenses may include any medically-necessaryhealth care products and services, a detailed list is attached. These expenses are qualified under Section 213(d) of the Internal Revenue Code and corresponding HRA rules. Reimbursement of these expenses are not considered taxable income.

Health Reimbursement accounts carry over each year. This allows unused funds in one plan year to be used in subsequent plan year(s)

If you discontinue employment with a participating employer you will continue to be entitled to benefits from the HRA to the extent that monies still exist in your account.

If the participant passes away the spouse and dependents will have access to the account. If the participant is deceased and there is no spouse or surviving dependents, any remaining balance in the account shall be forfeited and reallocated to the then existing HRA accounts equally.