Your HRA doesn’t require any tax reporting…in most cases.
HRAs are generally tax-exempt and don’t require any tax reporting. However, if you’re the divorced spouse or non-dependent survivor of an HRA participant, you must report the value of your HRA coverage as taxable income. In these cases, be watching for a tax statement and instructions from us in the mail.
Keep Form 1095-B in your files, but you don’t need it to file your taxes.
If your HRA qualified as “minimum essential” coverage during any month in 2021, you can log in online and print your Form 1095-B after January 20, 2022. If you need to request a paper copy, give us a call after January 20, 2022 at 1-888-828-4953. Form 1095-B is informational only—just keep it with your tax documents. You don’t need to file it with your individual return.
Need to send us something securely? Use our new secure messaging feature.
Please do not send private information to us by regular email. Use our secure messaging feature instead. Log in at veba.org and click the envelope icon. Give it a try. It’s easy and safe.
Have you separated from service or retired? Give us a call.
Give us a call to make sure we have your separation date on file and are not reporting your HRA coverage to Medicare. Medicare should pay before (be primary to) your HRA if you’re no longer working for the employer who set up your HRA.
COVID-related expenses are eligible for reimbursement.
You may use your HRA (if claims eligible) to reimburse any out-of-pocket medical costs associated with COVID treatment. This includes diagnostic testing if not fully covered by insurance.
Electing “limited HRA coverage” can help avoid future problems. Should you do it?
If your HRA is fully claims eligible and you’re in any of the situations listed below, you might want to consider electing “limited HRA coverage.” This could help avoid frustrating hassles down the road.
Medicare Coordination. You’re still employed by the employer who set up your HRA and you, your spouse, or a dependent have Medicare coverage, and you don’t want to be forced to use up your HRA funds before Medicare will pay claims.
HSA Eligibility. You, your spouse, or a dependent are making or receiving contributions to a health savings account (HSA). To be eligible for HSA contributions, IRS rules require that you have no other first-dollar coverage. This includes full HRA coverage.
Premium Tax Credit Eligibility. You, your spouse, or a dependent are purchasing insurance through a marketplace exchange and are taking the Premium Tax Credit (subsidy).
You can avoid potential problems by electing limited HRA coverage for yourself, your spouse, and/or a dependent as needed. Just complete and submit a Limited HRA Coverage Election form. The form, which contains more details, is available online. Log in at veba.org and click Resources.
Review your investments, and make sure your account information is current.
Now that the holiday rush is over, it’s a good time to review your investment allocation. Choosing the right pre-mixed portfolio or your own mix of funds can help reduce risk and increase potential returns over time. Want to learn more? Read our Choosing Your Investment Allocation brochure. To get a copy, log in at veba.org and click Resources. While you’re logged in, click My Profile and take a minute to make sure your contact information and other account information is current. We don’t want to lose track of you!
Post-separation (retiree-only) HRA plan participants: Read this if you’ve been rehired.
Does your HRA provide full coverage only after you have separated from service or retired? If so, please be reminded that if you leave employment and are later rehired by the employer who set up your HRA, your HRA claims eligibility will be (1) limited to dental, vision, and qualified long-term care expenses and premiums or (2) turned off until your re-employment ends. These limitations are determined by your HRA plan design. You may still file claims for all qualified medical expenses incurred prior to re-employment while your HRA was fully claims eligible. Your HRA may once again provide full coverage after your re-employment ends.
Special COBRA rights apply during the COVID pandemic.
In certain circumstances, individuals’ rights to continued coverage under COBRA may be expanded during the COVID-19 pandemic. For example, individuals experiencing a COBRA qualifying event may have a longer timeframe to elect COBRA coverage. If you have experienced a COBRA qualifying event, the event should be reported to the Plan by you or your employer, and you’ll receive important information from us about your rights. If you have further questions, please contact our Customer Care Center.
A Summary of Benefits and Coverage is included with your statement.
We’re required by federal law to provide you with a Summary of Benefits and Coverage (SBC) each year. Keep in mind that the VEBA Plan is a health plan, but it is not insurance. Much of the information and many of the defined terms in the SBC that apply to insurance coverage don’t directly apply to HRAs. Your best HRA information resource is the Plan Summary. To get a copy, log in at veba.org and click Resources.
On military leave? You can keep filing claims.
If you’re on military leave governed by the Uniformed Services Employment and Reemployment Rights Act (USERRA) and have a claims-eligible HRA, you can keep filing claims. Also, if your employer has stopped making HRA contributions due to your military leave, you can make voluntary after-tax contributions to your HRA under COBRA. Certain restrictions may apply.