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Financial Wellness: What is the HRA VEBA benefit?

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HRA VEBA Quick Facts

Health Reimbursement Arrangement (HRA): An HRA is a type of health plan that puts you in control. It’s a tax-free account for your family’s medical expenses and premiums. It’s easy to use, and you’ll pay less in taxes.

How You Get It: You must retire from an employee group that has voted to participate. IRS rules require employees to decide in groups (bargaining unit or non-represented groups). There is no individual choice. A list of participating groups can be found at this site:

How Much You’ll Get: Depending on how your employee group votes, you’ll get either one or both of the following cash outs contributed to an HRA at retirement:

Why You Need It: You’ll need money to pay your own medical premiums and expenses during retirement. You might spend up to $1,000 or more per month for you and your spouse. You can use your HRA funds to reimburse these costs. Several common examples are listed below.


How It Works: The County makes contributions to your account. You get to invest that money from the available fund lineup. You can use your funds right away for medical care expenses or save them up for later. Either way, you won’t pay any taxes, and you’ll get to keep a lot more for yourself.How You Use It: Managing and using your HRA is easy. You can access your account online any time, and there are several ways to get your money out fast.

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