Budgeting your HRA: Understand that the stipend may not last all year

When OP&F and Alight fund a Health Reimbursement Arrangement for retirees, the total amount the member is eligible to receive is posted. While members eligible for the health care stipend program can use these funds to be reimbursed for approved expenses, they must also realize that the amount may not cover the cost of premiums for the entire calendar year. OP&F urges members to track their expenses and be aware of what will be available to them later in the year.

Alight, and their partners eHealth and YSA, can set up the auto-reimbursement program to only reimburse a portion of a plan’s premium so that the stipend can last for the entire year. This type of payment plan could avoid the stipend from depleting and a member being faced with larger payments late in the year. Also, members should be aware that if any stipend money remains in the Health Reimbursement Arrangement at the end of the year, it will not roll over to the next year