Don’t leave money on the table. Reimbursement accounts help you take advantage of tax savings on eligible health care and dependent care expenses. In addition to the integrated Health Reimbursement Account (HRA) with the health plan, the Partnership offers you two optional reimbursement accounts: a Flexible Spending Account (FSA) (for your eligible health care expenses not covered by insurance) and a Dependent Care Reimbursement Account (DCRA) (for reimbursement of day care expenses for eligible dependents).

All staff participating in the health plan are automatically enrolled in the HRA. Optionally, you may also participate in either or both of the FSA and DCRA accounts. However, you cannot use money from one account to receive reimbursement for the other account.

The annual contribution limits for the optional reimbursement accounts are:

  • FSA – January 1, 2023: $3,050
  • DCRA – January 1, 2023: $5,000 per household / $2,500 if married, filing separately

By setting aside pre-tax money from your pay into the FSA and/or the DCRA, you may later file for reimbursement of eligible expenses incurred in the plan year (Jun. 1 – May 30) that are not covered by insurance. Because your contributions are deducted from your pay before federal income, state income, and Social Security taxes have been withheld, you save on taxes.

Health Reimbursement Account (HRA)

The HRA is fully integrated with the Blue Options health plan. That means that you do not need a debit card to access the funds in the account. The funds are automatically drafted for eligible expenses when you owe an amount to a provider that is not covered by the insurance. That amount is paid directly to the provider on your behalf and goes toward the plan deductible. Eligible expenses include deductible and coinsurance expenses from your primary care provider, specialists, or urgent care.

Because the HRA is fully integrated with the health plan, members don’t have to worry about any out-of-pocket costs as long as there are funds in the account. Let your provider know that your HRA is fully integrated with your health plan. If your provider would like to verify available funds, they may call their Blue Cross NC physician’s services number or Health Equity at 877-713-7682. They may also call our broker, Charles Morris, if further clarification is needed at 910-977-3438.

Your HRA account funds are determined by your coverage type:

Employee Only – $1,500 (full plan year)
Employee Spouse + – $3,000 (full plan year)

For more information about the HRA see:

Medical Flexible Spending Account (FSA)

Like the HRA, an FSA can be used to cover eligible health care expenses not covered by the insurance. Different from an HRA, however, an FSA is an optional benefit and it is funded by you, the employee, instead of the employer. It can also be used for expenses that the HRA will not cover, such as prescription drugs, some over-the-counter medications, dental care, eyeglasses, contact lenses, and more.

An FSA allows you to set aside a portion of your income each year on a pre-tax basis which can mean significant savings. The Partnership will advance the full amount that you elect, up to $3,050, on a Health Equity debit card, and will set up payroll deductions bi-monthly to pay it back your election amount by the end of the plan year.

For more information about the medical HRA, see:

Dependent Care Flexible Spending Account (DCRA)

The Partnership also offers a separate, optional FSA for dependent care. Like the medical FSA, with a DCRA, your contribution is deducted from your paycheck bi-monthly over the course of the plan year. Your contributions are also before taxes, which means your withdrawals from a DCRA are tax-free. As with the FSA, the Partnership will advance your election amount, up to $5,000, to your DCRA, giving you access to your full election amount as you slowly make contributions.

To be eligible, your dependent(s) must be a child under the age of 13, a spouse who is physically or mentally unable to care for themself, or any adult you can claim as a dependent on your tax return who is unable to care for themself.

For more information about the DCRA, see:

Eligibility

HRA – Because the HRA is fully integrated with the Partnership’s health insurance, you must be a regular full-time or abbreviated schedule employee to be eligible. Enrolling in the health insurance plan also enrolls you in the HRA. You can’t enroll in the HRA without enrolling in the health plan. To participate in the HRA, you must enroll in the health plan during the first 90 days after your date of hire, within 30 days of a qualifying life event or during open enrollment in April of each year. Only expenses incurred on or after your effective date of coverage may be reimbursed.

FSA and DCRA – Because the FSA and DCRA are optional, voluntary benefits, you can join if you are a regular employee in part-time, abbreviated schedule, or full-time status. To participate in the FSA or DCRA, you must enroll during the first 90 days after your date of hire, within 30 days of a qualifying life event, or during open enrollment in April of each year. Only expenses incurred on or after your effective date of coverage may be reimbursed.

To complete an enrollment or enrollment change form, download the appropriate form and return to Human Resources.