Falls School Board still considering HRA options
Members mull how and how much rollovers can be used
Menomonee Falls - The Menomonee Falls School Board continues to examine the impact of allowing the full rollover of unused 2013 Health Reimbursement Arrangement funds to the 2014 plan year, as recommended by staff.
HR Generalist and Systems Manager Sherry Jaeck presented the board on Monday with three scenarios demonstrating how HRA funds for an employee with a single plan could be rolled over and used from year to year.
The scenarios were based upon the district's highest deductible plan, the one the majority of employees have chosen, which has a $2,000 annual deductible for a single plan, with a $1,000 HRA component, and $4,000 annual deductible for a family plan, with a $2,000 HRA component.
For example, Jaeck explained, if a person with a single plan incurred $1,200 in medical expenses for a broken arm, they would pay the first $1,000 and the remaining $200 would come from their HRA funds. If that person only received preventive care for the rest of the year, they would carry into the next year their $800 HRA balance, which could be applied to their health insurance premium or co-pays, for example, depending on the plan design for next year, Jaeck said.
The district has yet to determine what specifically rolled over HRA funds could be used for or how plan designs would be modified next year or in future years.
One way the existing high-deductible plan could be modified, as shown in one of the scenarios presented, would be to include a 20 percent coinsurance, to a maximum of $1,000. Such a plan would save the district money and would also be cheaper for the employee, Jaeck said.
The board did not take any action last week [Feb. 11]. If the rollover of HRA funds is approved, the most that could be rolled over from year to year would be three times the annual district contribution, or $3,000 for the highest deductible single plan. Once that cap is reached, the district would no longer contribute additional HRA funds until the balance fell below that level.
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