I only had one employer who had an HRA available and it was sweet! The amount that they provided per year was designed to offset the deductible of an old-fashioned non-HDHP plan. Because of a medication our daughter was taking at the time, this was extremely convenient.My wife and I have separate HRA's from our former employers that reimburse any medical expense, including Medicare premiums, co-pays, dentist, vision etc. My HRA has been $4,200 a year and my wife's has been $7,000 a year, with both carrying over the balance, if any, indefinitely until it's used up. The reimbursement money is tax free. Until 2022 we used it all up every year in November due to a tier 5 prescription my wife no longer takes which had a co=pay of over $6,000. A different drug, of about the same retail cost but administered by infusion costs us nothing because it is covered by Part B and her Plan N.
My HRA is being eliminated as of 12/31/23 after 5 years of reimbursement, but any remaining dollars can be used on expenses until depleted. I have about 2k left. We shifted Part B reimbursement to my HRA to drain it, so my wife's has about $3,000 left in it. Our HRA reimbursement for 2024 will be around $12,000, instead of the usual $11,200. Our reimbursement amounts will drop to $7,000 a year indefinitely after the carry over balances are consumed, which should run into 2025.
Since Medicare Part B premiums are deducted automatically from SS every month and are then immediately auto-reimbursed in checking from the HRA, that portion feels like added income not subject to tax. Medigap and Part D premiums are also auto-debited from checking but are immediately auto-reimbursed back into checking by the HRA.
It's kind of hard to complain about losing money that most people never receive, especially money that doesn't count as income.
Cheers!
Statistics: Posted by dcabler — Mon Dec 25, 2023 8:20 am