FAQ – Health Reimbursement Arrangement (HRA)

Here you will find information on your Health Reimbursement Arrangement (HRA) provided to you at retirement from your school district. If you are not sure if your employer is providing you with an SPP or HRA, please go to Your Plan to find out.

HRA info you need to know when you are considering retirement

Your employer has set up a Health Reimbursement Arrangement (HRA) account with MidAmerica to reimburse you for your eligible medical expenses and/or premiums in retirement. An HRA is an interest-bearing, employer-funded account created in your name. It’s important to note that HRA plan designs may vary. For example, some plans are designed so that initial contributions are made once you retire or separate from service, while others allow for contributions while you are actively employed, yet restrict access to the funds until you retire. For detailed information on how your plan is designed, locate your employer from the Your Plan section of the website.

  • Employer deposits are tax-free (not subject to FICA, Federal, or State income taxes), so you can receive 100% of the value of each benefit dollar.
  • Deposits earn interest tax-free.
  • Reimbursements from the plan are tax-free for eligible medical expenses and/or premiums for you, your spouse, and any qualifying dependents, if applicable.
  • Account balance rolls over each year and there is no time frame by when you must submit expenses for reimbursement.
  • You have the flexibility to choose which eligible expenses and when to submit for reimbursement.

You, your spouse and any qualifying dependents can seek reimbursement for eligible medical expenses and/or premiums from your HRA. Qualifying dependents include children under the age of 27 and any tax dependents.

Investments are provided by American United Life Insurance Company®, a OneAmerica® Company (AUL). For more information on how your funds are invested, please refer to your Plan Highlights, located in the Your Plan section of the website.

See your Plan Highlights sheet in the Your Plan section of this website for information about your group’s specific plan design

More detailed HRA info when you are getting serious about retirement

Your employer has set up a Health Reimbursement Arrangement (HRA) account with MidAmerica to reimburse you for your eligible medical expenses and/or premiums in retirement. An HRA is an interest-bearing, employer-funded account created in your name. It’s important to note that HRA plan designs may vary. For example, some plans are designed so that initial contributions are made once you retire or separate from service, while others allow for contributions while you are actively employed, yet restrict access to the funds until you retire. For detailed information on how your plan is designed, locate your employer from the Your Plan section of the website.

You are automatically enrolled into the HRA once MidAmerica receives the deposit from your employer on your behalf. At that time, MidAmerica creates an account in your name and sends you a confirmation letter notifying you of your enrollment.

Some plans have vesting schedules, which means you do not own your account until you have met certain requirements. For detailed information regarding your plan’s vesting schedule, locate your employer from the Your Plan section of the website.

Only an employer can fund an HRA. You cannot contribute.

Unfortunately, no. Your separation date is your eligibility date. You cannot submit a claim for expenses that you incurred prior to this date.

Yes. If you qualify for a Premium Tax Credit under the Affordable Care Act (ACA), you must suspend your HRA account balance to receive the credit. You will not be able to submit or incur expenses for reimbursement during the time your HRA is suspended; however, your employer is still able to contribute to your account during the suspension and your account continues to earn interest. Your suspension will be in effect for the entire plan year and is irrevocable. To obtain a Suspension Form, locate your employer from the Your Plan section of the website.

No. However, if you are survived by a spouse or dependent, they can use the funds in your HRA account for their own eligible medical expenses. If you do not have a surviving spouse or qualifying dependent, the executor of your estate or trustee can use your remaining funds to reimburse eligible medical expenses and premiums not previously submitted on your behalf, including expenses related to your death. If an account balance still remains, the balance will forfeit back to your employer.

This varies from plan to plan. To review the medical expenses that are eligible for reimbursement under your plan, please see your Plan Highlights sheet in the Your Plan section of this website.

See your Plan Highlights sheet in the Your Plan section of this website.

What you need to know about HRA once you decide on a retirement date

Your employer has set up a Health Reimbursement Arrangement (HRA) account with MidAmerica to reimburse you for your eligible medical expenses and/or premiums in retirement. An HRA is an interest-bearing, employer-funded account created in your name. It’s important to note that HRA plan designs may vary. For example, some plans are designed so that initial contributions are made once you retire or separate from service, while others allow for contributions while you are actively employed, yet restrict access to the funds until you retire. For detailed information on how your plan is designed, locate your employer from the Your Plan section of the website.

You are automatically enrolled into the HRA once MidAmerica receives the deposit from your employer on your behalf. At that time, MidAmerica creates an account in your name and sends you a confirmation letter notifying you of your enrollment.

Some plans have vesting schedules, which means you do not own your account until you have met certain requirements. For detailed information regarding your plan’s vesting schedule, locate your employer from the Your Plan section of the website.

  • Employer deposits are tax-free (not subject to FICA, Federal, or State income taxes), so you can receive 100% of the value of each benefit dollar.
  • Deposits earn interest tax-free.
  • Reimbursements from the plan are tax-free for eligible medical expenses and/or premiums for you, your spouse, and any qualifying dependents, if applicable.
  • Account balance rolls over each year and there is no time frame by when you must submit expenses for reimbursement.
  • You have the flexibility to choose which eligible expenses and when to submit for reimbursement.

You, your spouse and any qualifying dependents can seek reimbursement for eligible medical expenses and/or premiums from your HRA. Qualifying dependents include children under the age of 27 and any tax dependents.

Investments are provided by American United Life Insurance Company®, a OneAmerica® Company (AUL). For more information on how your funds are invested, please refer to your Plan Highlights, located in the Your Plan section of the website.

Only an employer can fund an HRA. You cannot contribute.

Yes. If you qualify for a Premium Tax Credit under the Affordable Care Act (ACA), you must suspend your HRA account balance to receive the credit. You will not be able to submit or incur expenses for reimbursement during the time your HRA is suspended; however, your employer is still able to contribute to your account during the suspension and your account continues to earn interest. Your suspension will be in effect for the entire plan year and is irrevocable. To obtain a Suspension Form, locate your employer from the Your Plan section of the website.

No. However, if you are survived by a spouse or dependent, they can use the funds in your HRA account for their own eligible medical expenses. If you do not have a surviving spouse or qualifying dependent, the executor of your estate or trustee can use your remaining funds to reimburse eligible medical expenses and premiums not previously submitted on your behalf, including expenses related to your death. If an account balance still remains, the balance will forfeit back to your employer.

Special rules may apply if you return to work for your former employer. Please consult your employer.

This varies from plan to plan. To review the medical expenses that are eligible for reimbursement under your plan, please see your Plan Highlights sheet in the Your Plan section of this website.

Post-Retirement HRA Information

About your HRA

Your employer has set up a Health Reimbursement Arrangement (HRA) account with MidAmerica to reimburse you for your eligible medical expenses and/or premiums in retirement. An HRA is an interest-bearing, employer-funded account created in your name. It’s important to note that HRA plan designs may vary. For example, some plans are designed so that initial contributions are made once you retire or separate from service, while others allow for contributions while you are actively employed, yet restrict access to the funds until you retire. For detailed information on how your plan is designed, locate your employer from the Your Plan section of the website.

You were automatically enrolled by your employer. No action is necessary on your part.

Some plans have vesting schedules, which means you do not own your account until you have met certain requirements. For detailed information regarding your plan’s vesting schedule, locate your employer from the Your Plan section of the website.

  • Employer deposits are tax-free (not subject to FICA, Federal, or State income taxes), so you can receive 100% of the value of each benefit dollar.
  • Deposits earn interest tax-free.
  • Reimbursements from the plan are tax-free for eligible medical expenses and/or premiums for you, your spouse, and any qualifying dependents, if applicable.
  • Account balance rolls over each year and there is no time frame by when you must submit expenses for reimbursement.
  • You have the flexibility to choose which eligible expenses and when to submit for reimbursement.

You, your spouse and any qualifying dependents can seek reimbursement for eligible medical expenses and/or premiums from your HRA. Qualifying dependents include children under the age of 27 and any tax dependents.

For information regarding contribution frequency, locate your employer from the Your Plan section of the website.

Investments are provided by American United Life Insurance Company®, a OneAmerica® Company (AUL). For more information on how your funds are invested, please refer to your Plan Highlights, located in the Your Plan section of the website.

Only an employer can fund an HRA. You cannot contribute.

The funds deposited in your account must stay within your employer-sponsored HRA plan.

No. However, if you are survived by a spouse or dependent, they can still receive the benefit of your HRA and are able to access the funds for their eligible medical expenses. If you do not have a surviving spouse or qualifying dependent, the executor of your estate or trustee can use your remaining funds to reimburse eligible medical expenses and premiums not previously submitted on your behalf, including expenses related to your death. If an account balance still remains, the balance will forfeit back to your employer.

Special rules may apply if you return to work for your former employer. Please consult your employer.

Yes. If you qualify for a Premium Tax Credit under the Affordable Care Act (ACA), you must suspend your HRA account balance to receive the credit. You will not be able to submit or incur expenses for reimbursement during the time your HRA is suspended; however, your employer is still able to contribute to your account during the suspension and your account continues to earn interest. Your suspension will be in effect for the entire plan year and is irrevocable. To obtain a Suspension Form, locate your employer from the Your Plan section of the website.

Reimbursements and Processing

To review the medical expenses that are eligible for reimbursement under your plan, please find your employer under the Your Plan section of the website.

Yes. You can submit a claim prior to paying the bill as long as you have incurred the expense. Please note some plans restrict reimbursements to premiums only – please review your Plan Highlights, located in the Your Plan section of the website for more information on eligible reimbursements.

No. Premium expenses must be incurred and paid prior to being reimbursed. You are not able to submit a reimbursement request for an entire year’s worth of premiums in advance.

  • To submit a monthly recurring premium expense, you can set up reimbursements online or fill out the Recurring Claim Form, which can be obtained from the Your Plan section or by calling (855) 329-0095.
  • If you submit a recurring claim, it is valid for 12 months and a new claim form and Premium Notice must be submitted thereafter. If your insurance premiums or coverage change mid-year, you must submit a new claim and Premium Notice at that time.
  • To submit a one-time medical expense or premium, you can set up a reimbursement online or fill out the one-time claim form, which can be obtained from the Your Plan section or by calling (855) 329-0095.
  • If you do not supply adequate supporting documentation, MidAmerica will hold your funds until they receive the necessary information.
  • All claims will be processed in approximately 7-10 business days.
  • Direct deposit is available by checking this option when submitting a claim online or completing the Direct Deposit Form, which can be obtained from the Your Plan section or by calling (855) 329-0095.

You can substantiate your claim with one of the following:

  • The Explanation of Benefits (EOB) statement returned to you from the insurance carrier indicating the amount you are responsible for
  • Copay receipts if you are covered under a managed care or prescription drug plan
  • If there is no insurance for the health care expenses, submit an itemized bill with the following:
    • Name of the provider and patient
    • Service cost, date and description
    • Notation when there is no coverage

You can substantiate your claim with a Premium Notice, such as a bill or acceptance letter from the insurance company, which includes the following:

  • The premium amount
  • The effective date of the coverage
  • Name of the person who is insured – this will be you, your spouse or a qualifying dependent

A letter from your employer is also acceptable if you are remaining on your employer’s group health coverage. A recurring claim is valid for 12 months and a new claim form and Premium Notice must be submitted annually.

Yes. The IRS requires that MidAmerica receives documentation each month.

You can streamline this process by submitting your recurring claim online though MidAmerica’s online claim submission, which is available by going to the Your Plan section of the website. After you’ve entered in the claim information, you will have the option to receive a monthly email that allows you to attest to your claim via a link contained in the email’s message.

You can send in one of the following items to satisfy this requirement:

  • An “I Attest” statement confirming that your recurring claim is still in effect and reimbursable. MidAmerica has provided a simple Attestation Form, which can be found by locating your employer under the Your Plan section of the website. You may mail, fax or email the statement. If sending via email, email to claims@midamerica.biz.
  • Proof of payment (cancelled check showing that it was cashed [both sides of check], bank statement, etc.)
  • Proof that the claims were incurred (letter from insurance company showing the policy still in force, monthly statement, etc.)

There may be a $5 reimbursement fee assessed per hard copy claim form or $2.50 fee per online claim, capped at six fees per year. To minimize fees and maximize interest, you may submit multiple claims at the same time and only pay one fee. Expenses do not expire and can be submitted at any time. To find out if this fee applies to your plan, refer to your Plan Highlights, located in the Your Plan section of the website.