Page 15 - 2015 Advia CU Benefits & Notices WI/IL
P. 15
Advia CU – WI/IL 2015
Health Reimbursement Arrangement (HRA)
A Health Reimbursement Arrangement (HRA) is an IRS-approved program which allows the Credit
Union to share in the cost of specific expenses within designated health plans.
One of the PPO plans and one of the HMO plans are both HRA plans. If you choose either of these
plans, the Credit Union will assist you in paying part of the deductible should you or a covered family
member require a service(s) subject to the deductible. Here is how the PPO HRA works:
HRA PPO 1500
Deductible: $1,500 Single / $3,000 Family
Employee pays first $750 of each single deductible
Advia CU pays remaining $750 of $1,500 deductible
Maximum deductible exposure for Employee:
$750 for single contract or $1,500 for Family (Employee plus one or
more)
Health Equity (HEQ) HRA will receive information from BCBSM on each
claim against deductible.
HEQ will pay provider for CU-paid portion.
Employee may use FSA Benny card funds for their portion of deductible.
Flexible Spending Accounts (FSA)
Flexible Spending Accounts let you pay for health care and day
care expenses with tax-free dollars. How much you save depends
on how much you pay in income tax. There are two types of
accounts under this plan: a Health Care Reimbursement Account
(HCRA) and a Dependent Care Reimbursement Account (DCRA).
You may enroll in one or both. Kushner and Company administers
this plan for the Credit Union.
With an HCRA or DCRA, you decide before the start of the year
how much to contribute to each account. Your contributions are
withheld in equal amounts from your paychecks throughout the
year. The money is set aside separate in tax-free accounts. Claim
the money in your account(s) by submitting a claim form for
reimbursement. Claims for the HCRA may be made by utilizing
your Benny FSA Debit card instead of submitting a claim form.
How the Accounts Save You Money Without an HCRA or DCHA With an HCRA or DCRA
$25,000 $25,000
Gross Salary $0 ($2,000)
LESS: Annual Amount Deposited into HCRA / DCRA $25,000 $23,000
($6,250) ($5,750)
Taxable Income $18,750 $17,250
LESS: Annual Taxes (assumed at 25%)
($2,000) N/A
Net Salary
LESS: Out-of-Pocket Medical and/or $16,750 $17,250
Dependent Care Expenses for the Year NONE $500
Disposable Income
Your Tax Savings
Salus Group© Copyright 2014 Page | 15
Health Reimbursement Arrangement (HRA)
A Health Reimbursement Arrangement (HRA) is an IRS-approved program which allows the Credit
Union to share in the cost of specific expenses within designated health plans.
One of the PPO plans and one of the HMO plans are both HRA plans. If you choose either of these
plans, the Credit Union will assist you in paying part of the deductible should you or a covered family
member require a service(s) subject to the deductible. Here is how the PPO HRA works:
HRA PPO 1500
Deductible: $1,500 Single / $3,000 Family
Employee pays first $750 of each single deductible
Advia CU pays remaining $750 of $1,500 deductible
Maximum deductible exposure for Employee:
$750 for single contract or $1,500 for Family (Employee plus one or
more)
Health Equity (HEQ) HRA will receive information from BCBSM on each
claim against deductible.
HEQ will pay provider for CU-paid portion.
Employee may use FSA Benny card funds for their portion of deductible.
Flexible Spending Accounts (FSA)
Flexible Spending Accounts let you pay for health care and day
care expenses with tax-free dollars. How much you save depends
on how much you pay in income tax. There are two types of
accounts under this plan: a Health Care Reimbursement Account
(HCRA) and a Dependent Care Reimbursement Account (DCRA).
You may enroll in one or both. Kushner and Company administers
this plan for the Credit Union.
With an HCRA or DCRA, you decide before the start of the year
how much to contribute to each account. Your contributions are
withheld in equal amounts from your paychecks throughout the
year. The money is set aside separate in tax-free accounts. Claim
the money in your account(s) by submitting a claim form for
reimbursement. Claims for the HCRA may be made by utilizing
your Benny FSA Debit card instead of submitting a claim form.
How the Accounts Save You Money Without an HCRA or DCHA With an HCRA or DCRA
$25,000 $25,000
Gross Salary $0 ($2,000)
LESS: Annual Amount Deposited into HCRA / DCRA $25,000 $23,000
($6,250) ($5,750)
Taxable Income $18,750 $17,250
LESS: Annual Taxes (assumed at 25%)
($2,000) N/A
Net Salary
LESS: Out-of-Pocket Medical and/or $16,750 $17,250
Dependent Care Expenses for the Year NONE $500
Disposable Income
Your Tax Savings
Salus Group© Copyright 2014 Page | 15
