Did you Know: It’s Time to Check Your HRA Balance

The Inter Faculty Organization's (IFO) advocacy and contract provide faculty with favorable working conditions, valuable protections, and support for our members and their families. So many, in fact, that sometimes it’s hard to follow everything you have available to you as a faculty member represented by the IFO.

In a series that will run throughout the year, we will briefly explain some of the benefits provided to you and resources to find more information.

Did you Know: It’s Time to Check Your HRA Balance

The IFO contract gives every faculty member who qualifies for health insurance benefits the opportunity to receive an annual, tax-free contribution of $800 to an individual Health Reimbursement Account (HRA) which can be immediately used to reimburse medical, dental and vision expenses not covered by insurance.  If you have a balance of less than $700 in your HRA account on December 31st of each year, MinnState makes a new $800 contribution to your account the following January.  If you keep a balance of $700 or more in your HRA account as of December 31st, the $800 contribution for the next calendar year goes into your Health Care Savings Plan (HCSP) account with the State of Minnesota, instead of your HRA account.  The HCSP provides a tax-free investment account you can use for healthcare reimbursement after you leave MnSCU.  Allowing the HRA contribution to roll into the HCSP is a good way to put away tax-free savings for retirement.

HRA Reimbursement for Dependents Who Aren’t on Your Insurance

You can use your HRA account to reimburse qualifying expenses incurred on behalf of one of your dependents, even if that person is not enrolled as a dependent on your employee health or dental insurance.  For example, if your spouse has their own employer-provided insurance, you can still get reimbursed for the cost of their new glasses or any other qualifying expense.   Under a federal regulation, employers can only provide HRA benefits to persons covered by a full health insurance plan, so 121 Benefits will require you to fill out a form attesting that your dependent has other coverage. 

Your support of IFO makes it possible to provide the advocacy needed for faculty benefits. If you are not a member and are ready to join your colleagues, please click here. If you are unsure about your current membership status please click here.

If you have any questions please contact me at kaspari@ifo.org