What is a Retiree HRA?
A Retiree HRA (Health Reimbursement Arrangement) is a tax-free way for employers to reimburse certain retirees for qualified medical expenses. Employers decide how much money to allocate to each retiree’s HRA and how often the funds are replenished. Typically, HRAs reimburse all qualified medical expenses under IRS Code Section 213 (although the employer may choose to limit the scope of eligible expenses). GDI can coordinate services with a Medicare support provider (see graphic below).
What is a VEBA?
VEBA stands for Voluntary Employee Beneficiary Association plan. A VEBA behaves in a similar manner to an HRA because it reimburses eligible medical expenses. The primary difference between a VEBA and an HRA is that all benefits are paid from a trust fund under a VEBA. GDI’s Retiree Solutions includes both options to assist retirees with their out of pocket medical expenses.
Are you able to bill retiree health plan participants and remit premium payments to different entities?
We are able to customize our retiree billing services to fit most circumstances. Please send an email to email@example.com with your specific situation and we’ll respond right away.