HRAs work differently for fully retired members and those who go back to work
By Michael Pramik, Ohio Public Employees Retirement System
April 19, 2022 – Health care has changed in 2022 for OPERS re-employed retirees, and we’ve updated our fact sheets to help re-employed retirees better understand the new OPERS health care program.
The fact sheet for Pre-Medicare re-employed retirees explains how health care works, including details about the Health Reimbursement Arrangement.
Retirees are considered “re-employed” if they go back to work in an OPERS-contributing position. Re-employed retirees who have opted in to the HRA will receive deposits into a Re-employed Accumulated HRA while they’re working. The funds cannot be used to reimburse expenses incurred during the re-employment period. Rather, the funds accumulate. They’re transferred into a regular OPERS HRA after we receive official notification from your employer of your re-employment termination.
The fact sheet defines the re-employment period and gives examples of how the Re-employed Accumulated HRA will work for representative retirees. It also explains how participation in the OPERS health care program is impacted once you turn 65 and become eligible for Medicare.
The fact sheet for Medicare re-employed retirees also explains how health care has changed beginning in 2022. Like the plan for Pre-Medicare retirees, the HRA is a retiree-only plan. But unlike Pre-Medicare members, Medicare-eligible retirees must enroll in coverage through Via Benefits to be eligible for an HRA deposit.
Medicare re-employed retirees also cannot use HRA funds for reimbursement of expenses incurred while they’re re-employed. The funds accumulate and are transferred to a regular HRA after re-employment ends.
The Medicare fact sheet defines the re-employment period and gives an example of how the Re-employed Accumulated HRA will work for a representative retiree.