Healthy Rewards PPO and Changes to HRA Account
October 18, 2019
Beginning on January 1, 2020, participants in the Health Rewards PPO, will have a $4,800 cap on the amount that can be accumulated in the Healthy Rewards HRA.
HRA balances at or above $4,800 will not be forfeited as of January 1, 2010 but you will also not be eligible to earn wellness credit (dollars) from the company for the 2020 benefit year. Those having a Healthy Rewards HRA balance above $3,200, ($4,000 for individual coverage) will be ineligible to receive the 2020 full incentive amount.
Keep in mind, Healthy Rewards HRA dollars can only be used in conjunction with the Healthy Rewards PPO and the HRA is not “portable” to any other medical plan nor can any balance be carried into a personal account upon retirement. We encourage those of you who may be considering this plan to consider the cap on contributions and the requirement to be part of the Healthy Rewards program in order to use accumulated HRA dollars before making your plan selections for the upcoming benefit year.
As an additional consideration, during annual enrollment you may make an election as to whether you spend either Flexible Spending (FSA) dollars or Healthy Rewards HRA dollars first for prescription drugs and medical care. Keep in mind that FSA dollars must be spent during the eligible period for the plan year. For this reason, spending FSA dollars first is the default. You might want to consider your needs for the year in conjunction with those medical/dental/vision expenses that are not eligible to be reimbursed from the HRA. For example, if you were to elect to spend HRA dollars first for medical and prescription drugs, you would then be able to use FSA dollars for non-medical and non-prescription drugs expenses. It is important to note that this is a one-time election made only during annual benefits open enrollment that cannot be change during the plan year.