Health Reimbursement Arrangement (HRA/VEBA) and Flexible Spending Accounts (FSAs)
The City of Minneapolis has established an HRA/VEBA that provides tax-free reimbursement of eligible health care expenses not paid by other insurance. Plan benefits are funded using a voluntary employees' beneficiary associate trust or VEBA. Unused funds in members' accounts are carried over from year to year and build for future expenses while earning tax-free interest.
The City of Minneapolis makes HRA/VEBA contributions to employees who enroll in the City of Minneapolis medical plan. HRA/VEBA contributions vary based on whether you choose single or family coverage. The monthly contribution amounts are $90.00/month - single coverage, $190.00/month family coverage.
Generally, this account can be used to pay for eligible health care expenses incurred by yourself and your eligible dependents after you enroll in the City of Minneapolis medical plan. Only former employees can use the HRA/VEBA funds to pay for health insurance premiums, including premiums for Medicare. Examples of eligible expenses can be found on the SelectAccount website.
If you elect to participate in the health care FSA, eligible expenses are paid from the health care FSA before they can be paid from your HRA/VEBA account.
Flexible Spending Accounts
The City of Minneapolis has two types of flexible spending accounts. The health care flexible spending account allows eligible employees to pay for certain health care expenses with pre-tax dollars. Similarly, the dependent care flexible spending account allows eligible employees to pay for eligible dependent day care expenses with pre-tax dollars.
If you are eligible to participate, you must decide each year during Open Enrollment how much you want to contribute to an FSA for the following year. The annual limit for contributions to your health care flexible spending account is $2,650 for 2018. The annual limit for the dependent care FSA is $5,000 per family. These limits are determined by the federal government. You cannot change your discontinue your contributions mid-year except as appropriate in the event of a qualified change in status (such as marriage, birth of a child).
Any unspent funds greater than $25 but less than or equal to $500 that remain in the health care FSA at the end of the calendar year will be carried over to the 2018 plan year. This carryover feature does not apply to the dependent care FSA.
Claims and Balance Information for the HRA/VEBA and FSAs
The Online Member Service Center with SelectAccount allows you to access your account balance, submit claims, and review helpful resources on your HRA/VEBA and FSA accounts. To register:
- Visit selectaccount.com.
- Select Members and "Sign In/Register" at the top of the screen. This will take you to the Online Member Service Center sign-in page. From here, select "Register."
- Enter the requested information and your SelectAccount ID number. You can find your SelectAccount ID number on your account verification form or by calling customer service at 1-800-859-2144.
Last updated Dec 7, 2017