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General Information

Below is a list of frequently asked questions (FAQs) regarding general plan information. If you cannot find what you are looking for, check one of the other FAQ categories:  Funding and Benefits of Participation; Using Your Account; or Investment Options.


What is the VEBA MEP?

The VEBA Medical Expense Plan (MEP) is a funded health reimbursement arrangement (HRA) offered by VEBA Trust. Created in 1984, VEBA Trust is a non-profit, tax-exempt health and welfare benefit trust. VEBA Trust currently provides benefits to 70,000 public employees and retirees from more than 400 school districts, community and technical colleges, higher education institutions, and state agencies in Washington. For more information, go to About.

What does "VEBA" stand for?

"VEBA" stands for voluntary employees’ beneficiary association. VEBAs are a type of trust instrument used to hold plan assets for the purpose of providing employee benefits. VEBAs are authorized by Internal Revenue Code section 501(c)(9). VEBA Trust offers a health reimbursement arrangement commonly known as the VEBA MEP.



What is an HRA?

A health reimbursement arrangement (HRA) is an account-based health plan you can use, after becoming claims-eligible, to reimburse your qualified out-of-pocket medical care costs as defined by the IRS. Common qualified expenses include co-pays, deductibles, prescription drugs, retiree insurance premiums, etc. An HRA is not an insurance plan, and you do not pay a premium. Your account is funded with contributions from your employer. Employer contributions, investment earnings, and withdrawals (claims) are tax-fee. Contribution amounts will not be included on Form W-2 from your employer, and you will not receive a Form 1099 for earnings or withdrawals (claims).



Why are HRAs sometimes called VEBAs?

Many governmental employers in the Northwest are familiar with the term "VEBA" and understand it to mean a benefit plan that reimburses medical care expenses and premiums. These medical reimbursement programs are actually defined by the IRS as HRAs, but are commonly referred to as "VEBA" plans.



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