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Your HRA doesn’t require any tax reporting…in most cases.

HRAs are generally tax-exempt and don’t require any tax reporting. However, if you’re the divorced spouse of an HRA participant, you must report the value of your HRA coverage as taxable income. In this case, be watching for a tax statement and instructions from us in the mail.

 

Keep Form 1095-B in your files, but you don’t need it to file your taxes.

If your HRA qualified as “minimum essential” coverage during any month in 2021, you can log in online and print your Form 1095-B after January 20, 2022. If you need to request a paper copy, give us a call after January 20, 2022 at 1-888-711-9182. Form 1095-B is informational only—just keep it with your tax documents. You don’t need to file it with your individual return.

 

Need to send us something securely? Use our new secure messaging feature.

Please do not send private information to us by regular email. Use our secure messaging feature instead. Log in at indianahra.com and click the envelope icon. Give it a try. It’s easy and safe.

 

Have you separated from service or retired? Give us a call.

Give us a call to make sure we have your separation date on file and are not reporting your HRA coverage to Medicare. Medicare should pay before (be primary to) your HRA if you’re no longer working for the employer who set up your HRA.

 

COVID-related expenses are eligible for reimbursement.

You may use your HRA (if claims eligible) to reimburse any out-of-pocket medical costs associated with COVID treatment. This includes diagnostic testing if not fully covered by insurance.

 

Electing “limited HRA coverage” can help avoid future problems. Should you do it?

If your HRA is fully claims eligible and you’re in any of the situations listed below, you might want to consider electing “limited HRA coverage.” This could help avoid frustrating hassles down the road.

 

  1. Medicare Coordination. You’re still employed by the employer who set up your HRA and you, your spouse, or a dependent have Medicare coverage, and you don’t want to be forced to use up your HRA funds before Medicare will pay claims.

  2. HSA Eligibility. You, your spouse, or a dependent are making or receiving contributions to a health savings account (HSA). To be eligible for HSA contributions, IRS rules require that you have no other first-dollar coverage. This includes full HRA coverage.

  3. Premium Tax Credit Eligibility. You, your spouse, or a dependent are purchasing insurance through a marketplace exchange and are taking the Premium Tax Credit (subsidy). 

 

You can avoid potential problems by electing limited HRA coverage for yourself, your spouse, and/or a dependent as needed. Just complete and submit a Limited HRA Coverage Election form. The form, which contains more details, is available online. Log in at indianahra.com and click Resources.

 

Make sure your account information is current.

Now that the holiday rush is over, it’s a good time to make sure the contact information and other details we have on file for you are up to date. Log in at indianahra.com and click My Profile.

 

Post-separation (retiree-only) HRA plan participants: Read this if you’ve been rehired.

Does your HRA provide full coverage only after you have separated from service or retired? If so, please be reminded that if you leave employment and are later rehired by the employer who set up your HRA, you cannot be reimbursed for any medical care expenses or premiums incurred while you are re-employed. You may still file claims for all qualified medical expenses incurred prior to re-employment while your HRA was fully claims eligible. Your HRA may once again provide full coverage after your re-employment ends.

 

A fund change occurred in December 2021.

Franklin Total Return A was replaced by Loomis Sayles Core Plus Bond N. This change occurred automatically on December 1, 2021. Advance notice to participants was sent by email and was included with quarterly statements in October. 

 

The Loomis Sayles fund has a lower expense ratio by 52 basis points (0.52%). Also, it has had better 3-,

5-, and 10-year performance over the long term. Both funds have the same objective and are categorized by Morningstar as “Intermediate Core-Plus Bond.” (Note that Vanguard Total Bond Market Index will remain in the lineup as a low-cost option at five basis points (0.05%).)

 

If you have questions regarding this fund change, please contact your local VALIC financial advisor. For links to fund prospectuses, fact sheets, historical performance, and operating expenses, or to check and update your investment fund allocation, go to indianahra.com and click Investments. You should read the prospectuses and consult with your personal financial advisor before making investment decisions.

 

Special COBRA rights apply during the COVID pandemic.

In certain circumstances, individuals’ rights to continued coverage under COBRA may be expanded during the COVID-19 pandemic. For example, individuals experiencing a COBRA qualifying event may have a longer timeframe to elect COBRA coverage. If you have experienced a COBRA qualifying event, the event should be reported to the Plan by you or your employer, and you’ll receive important information from us about your rights. If you have further questions, please contact our Customer Care Center.

 

On military leave? You can keep filing claims.

If you’re on military leave governed by the Uniformed Services Employment and Reemployment Rights Act (USERRA) and have a claims-eligible HRA, you can keep filing claims. Also, if your employer has stopped making HRA contributions due to your military leave, you can make voluntary after-tax contributions to your HRA under COBRA. Certain restrictions may apply.