Health Reimbursement Account (HRA) - Retirement Planning

[G-Man]

After doing some research the other day and to my surprise, it looks like my wife and I are eligible for a retiree HRA when we turn 65. We are 7+ years from turning 65 but wanted to include this information in my Fidelity retirement tool. As of today, my wife HRA includes $4800 for the both of us. My HRA includes $4500 for the both of us.

Is this enough to pay for my wife and I Medicare and medigap premiums, Part D, vision and dental?

Is there any stipulation of what expenses HRA can paid for?

Can long-term care premiums be pay by HRA?

 

[ivinsfan]

Lots to digest here but in 7 years a lot can change in retiree bennies and rules.


JMO but I might leave that out of your Fidelity tool and make sure you can't do without it. Look at it again in 5 years. Meanwhile start looking at the rules for HSAs.

 

[G-Man]

Lots to digest here but in 7 years a lot can change in retiree bennies and rules.


JMO but I might leave that out of your Fidelity tool and make sure you can't do without it. Look at it again in 5 years. Meanwhile start looking at the rules for HSAs.

HSA? HRA and HSA are different right?

 

[ivinsfan]

HSA? HRA and HSA are different right?

Typo.... I dont actually know the difference between a H savings account and a retirement one which is why I advised you to start reading!

 

[Dash man]

I have an HRA through my previous employer. They contribute $900/year to each my wife and I. We have to use Via Benefits to use the HRA. It’s paid our Medicare supplement and Part D premiums until used up. Then it accumulates the premiums and reimbursed us at the beginning of the next year up to the $900 each. It’s like a late Christmas gift. [emoji3]

 

[G-Man]

I have an HRA through my previous employer. They contribute $900/year to each my wife and I. We have to use Via Benefits to use the HRA. It’s paid our Medicare supplement and Part D premiums until used up. Then it accumulates the premiums and reimbursed us at the beginning of the next year up to the $900 each. It’s like a late Christmas gift. [emoji3]

For my HRA, we have to use Via Benefits as well and have to sign up for at least 1 product (ex. Part D) offering from them.

For my wife HRA, they use Aon.

So, it looks like $9200 ($4,500 + $4,800) HRA dollars on a yearly basis is more than enough to paid for Medicare and medigap premiums.

 

[G-Man]

I have an HRA through my previous employer. They contribute $900/year to each my wife and I. We have to use Via Benefits to use the HRA. It’s paid our Medicare supplement and Part D premiums until used up. Then it accumulates the premiums and reimbursed us at the beginning of the next year up to the $900 each. It’s like a late Christmas gift. [emoji3]

So, it does not pay for Medicare Part B premium?

 

[Dash man]

So, it does not pay for Medicare Part B premium?

I just checked, and yes it does pay for Part B premiums, but not IRMAA.

 

[G-Man]

According to this this IRS publication, these are the qualified medical expenses:

https://www.irs.gov/publications/p969#en_US_2013_publink1000204194

Qualified medical expenses from your HRA include the following.
• Amounts paid for health insurance premiums.
• Amounts paid for long-term care coverage.
• Amounts that aren’t covered under another health plan.

 

[Bamaman]

I participated in a RHSA account for many years that worked like a 401K--matching $.

When I retired @ 58, I had the money in my account to pay my share of the company healthcare premium for myself and my wife (with Medicare) until 1 month short of my turning 65. That was $415 a month times 6.5 years I saved big, big $.

We now are getting paid something like $250 a month each through VIA Benefits with a maximum of $550 a year--each.

 

[G-Man]

Anyone else have a HRA? Based on the amount of the contribution that my wife and I employee will contribute at age 65, it seems like a great benefit and will pay for most is not all of the Medicare and Medigap premiums and other medical expenses. It seems like a great deal and hopefully the plan will still be available when my wife and I reach age 65.

 

[ivinsfan]

For my HRA, we have to use Via Benefits as well and have to sign up for at least 1 product (ex. Part D) offering from them.

For my wife HRA, they use Aon.

So, it looks like $9200 ($4,500 + $4,800) HRA dollars on a yearly basis is more than enough to paid for Medicare and medigap premiums.

I wouldn't assume that.

 

[G-Man]

I wouldn't assume that.

Please explain your comment.

 

[Dash man]

Please explain your comment.

I’ll give you my two cents. When I retired in 2013, I was told to expect MegaCorp to contribute a $800/month subsidy to my medical costs beginning at 65. When I turned 65 last year and began Medicare I learned it is now $900/year each for my wife and I and we have to use Via Benefits to sign up for a supplement and Part D plan (or Medicare Advantage).
He’s just saying things can change or just be taken away.

 

[G-Man]

I’ll give you my two cents. When I retired in 2013, I was told to expect MegaCorp to contribute a $800/month subsidy to my medical costs beginning at 65. When I turned 65 last year and began Medicare I learned it is now $900/year each for my wife and I and we have to use Via Benefits to sign up for a supplement and Part D plan (or Medicare Advantage).
He’s just saying things can change or just be taken away.

Got it. I will keep my original data in the Fidelity retirement tool for Medicare and Medigap premiums as though the HRA did not exist. If the HRA exist when my wife and I turn 65, then it's a bonus and we can spend more during retirement.

 

[ivinsfan]

Please explain your comment.

I'm actually talking about the cost of Medicare and supplement here. Don't assume 9K will be ample for two. In fact it could be more, good to excellent coverage is not cheap. Part B is rapidly approaching 200 bucks a month per person....I'm 100% certain it will be over 200 and then some by the time you reach 65.



Plan without your subsidy to be on the safe side.

 

[ivinsfan]

I’ll give you my two cents. When I retired in 2013, I was told to expect MegaCorp to contribute a $800/month subsidy to my medical costs beginning at 65. When I turned 65 last year and began Medicare I learned it is now $900/year each for my wife and I and we have to use Via Benefits to sign up for a supplement and Part D plan (or Medicare Advantage).
He’s just saying things can change or just be taken away.

Dash I'm a she...

 

[Dash man]

Dash I'm a she...

oops!

 

[G-Man]

Any other comments?