Heath Reimbursement Overview

The HRA Plan combines an Aetna High Deductible Health Plan (“HDHP”) with a financial reimbursement account funded by Bucherer USA (a Health Reimbursement Account, or “HRA”).

The Aetna HDHP part of our HRA Plan provides traditional medical and prescription drug coverage. Deductibles are higher than the POS plan . Participants pay out-of-pocket for medical costs until they reach the deductible level (with the exception of preventive care services, which are covered at 100% by the plan).

The HRA is a financial reimbursement plan funded entirely by Bucherer USA with a $500 single / $800 family credit to your account for this plan year to help you satisfy the deductible. After you have met the $500 pre-fund deductible you may use the $500 single / $800 family HRA credit in your personal HRA to pay for eligible health care expenses.

IMPORTANT: If the $500 single / $800 family HRA credit is exhausted, you will be responsible for satisfying the remaining deductible before the plan begins to pay.

Tax advantages of an HRA:

Reimbursements made from Bucherer USA through the HRA are not considered part of your income and are not taxed.

How the HRA relates to your Aetna HDHP:

While the HRA works with the Aetna high deductible medical benefit plan, it is a separately administered program offered under separate terms and conditions as defined by Bucherer USA. Eligible expenses incurred during the year may be paid from the HRA automatically by Aetna.

When expenses exceed the medical plan deductible, the medical plan will reimburse you or your provider(s) based on the plan. Preventive care expenses received in-network are covered at 100% and not subject to any plan deductible or coinsurance.

Medical expenses that can be reimbursed from the HRA:

Qualified medical expenses include those expenses that are covered by our medical plan that comply with section 213(d) of the Internal Revenue Code. These expenses may include deductibles and coinsurance. Reimbursements do not include prescription drugs. You can be reimbursed for your dependent’s, medical expenses, as long as your dependent meets the definition of a dependent as defined by the IRS and is covered by the plan.

Expenses that are typically not reimbursable:

• Medical expenses that are not covered by our medical plan or do not meet IRS section 213(d) requirements.
• Medical expenses incurred by you or your spouse/partner or eligible dependents before your participation in the program was effective.
• Medical expenses that can be reimbursed to you through any other source.
• Nutritional supplements, health club dues and cosmetic surgery (unless medically necessary).

Note: The above information is designed only to give general information on this topic, and is not intended to be a comprehensive summary of the subject covered or provide tax or legal advice.