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The following information is applicable to all VEBA plans (except VEBA IV Life).
All processing of Membership Enrollment Forms is handled by your benefits/payroll office. The appropriate VEBA Membership Enrollment Form should be completed and delivered to your benefits/payroll office.
Your VEBA account is opened when your employer sends funds and your signed and completed Membership Enrollment Form to the VEBA third-party administrator (TPA).
After your account is opened, you may submit a VEBA Claim Form for your out-of-pocket medical, dental, or vision expenses or premiums incurred by yourself, your spouse, and/or your qualified dependents. Certain over-the-counter drugs, if properly substantiated, may also be reimbursed.
Claims payment is efficent and hassle free, and you may choose direct deposit. Benefits will be paid until your account is used up. You may also arrange to have monthly insurance premiums automatically paid by using the VEBA Systematic Payment Form. Eligible expenses and premiums are defined in Internal Revenue Code (IRC) Section 213(d).
NOTE: Reimbursable health related benefits must be for expenses incurred after your VEBA account is first opened. Withdrawals from your VEBA account may be made only for qualified medical, dental, or vision expenses/premiums or for tax-qualified long term care insurance premiums. Qualified dependents are defined in IRC Section 105(b) and described in IRS Publication 502.
The VEBA TPA will provide you with a semi-annual statement in January and July detailing your account activity. Sign up for E-statements. E-statements are a faster and more secure method of receiving your periodic participant activity statements. After signing up, you will no longer receive your statements throught the mail. You will instead receive an e-mail notification each time a new statement is available for online viewing. E-statements will be accessible online for up to two years.
If you have any questions about your VEBA account, you may view your personal account information on this website or contact the TPA at 1-800-VEBA101 (832-2101) or veba@rehnonline.com.
All expenses of operating the Plan are paid by reductions of investment earnings or, if there are no earnings, charged as a deduction to participant accounts. The net investment earnings are credited tax-free to your account on a monthly basis.
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Qualified Expenses Information
Filing Claims
Participants may request reimbursements by submitting a properly completed and signed Claim Form along with proof of claim to the third-party administrator, REHN & ASSOCIATES.
Reimbursements or payments of recurring medical, dental, vision, and/or tax-qualified long-term care insurance premiums may be requested using a Systematic Payment Form. Insurance premiums that are paid by an employer or that are or could be paid through a pre-tax Section 125 cafeteria plan are not eligible for reimbursement. If you are a participant in a Section 125 healthcare flexible spending account (FSA), you must exhaust your FSA benefits before submitting an eligible claim.
IRS Definition of Qualified Expenses and Premiums
Internal Revenue Code Section 213(d) defines qualified expenses, in part, as “medical care” amounts paid for insurance or “for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body…” To be eligible, these expenses must be to alleviate or prevent a physical defect or illness. Expenses solely for cosmetic reasons generally are not considered expenses for medical care. Examples include facelifts, hair transplants, and hair removal (electrolysis). Expenses that are merely beneficial to your general health (e.g., vacations) are not expenses for medical care. One fact or circumstance that often, but not always, indicates that medical care involves the treatment or prevention of disease is whether the care is prescribed by a physician. A mere suggestion by a physician probably is not enough. In addition, there should be a doctor-patient relationship between you and the physician prescribing the care, and the physician must be properly licensed.
Over-the-Counter (OTC) Medicines and Drugs
Quantities purchased for reimbursement should be limited to reasonable quantities expected to be consumed in a reasonable period of time. Typically, two bottles of an item in any one reimbursement is the limit. Sales tax on OTC items purchased can be included in the reimbursement. “Covered Items” include OTC drugs, medications, and treatments intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or injury. “Dual-purpose Items” may have a medical purpose and a personal/cosmetic or general health purpose. In this case, attach a note to your Claim Form from a licensed medical provider stating the beneficiary had a specific medical condition for which the item was purchased. “Excluded Items” are those used primarily for general health and well being. |
