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Menomonee Falls School District discusses how to handle unused health funds

Jan. 29, 2013

Menomonee Falls - The Menomonee Falls School District is considering how to address the rollover of unused 2013 Health Reimbursement Arrangement funds to the 2014 plan year.

The School Board on Monday briefly discussed a recommendation to allow the full amount of unused HRA funds to be rolled over for use in the subsequent plan year.

Human Resources Manager Lori Blodorn explained that two of the three health insurance plans offered by the district include HRA components. In those higher deductible plans, the first half of the deductible is to be met by the employee, while the second half is covered by the district through the HRA funds.

The majority of district employees have chosen the highest deductible plan, Blodorn said, which has a $2,000 annual deductible for the single plan, with a $1,000 HRA component, and $4,000 annual deductible for a family plan, with a $2,000 HRA component.

The most that could be rolled over in HRA funds from year to year would be three times the annual district contribution, Blodorn said. For the highest deductible single plan, for example, that amount would be $3,000. Once that cap is reached, the district would no longer contribute additional HRA funds until the balance falls below that level.

HRA funds that are carried over could also be used by employees to meet the first half of their deductible in the next plan year, Blodorn said.

Allowing employees to carry over the full amount of unused HRA funds from year to year would enable the district to promote consumerism and en courage employees to plan better financially for health care expenses, she said.

The cost of the HRA component is already incorporated into plan costs, Blodorn explained, so the decision to allow the full rollover of HRA funds would have no additional financial impact on the district or employees.

Board member David Noshay requested that staff provide more information on the financials behind the recommendation, along with potential scenarios exhibiting how rolled over HRA funds would be applied.

That information will be provided when the recommendation is brought back to the board for further discussion.

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