The VEBA Plan is a health reimbursement arrangement that allows your employer to contribute money to a trust on your behalf. The money in your account is yours to use or save. Use it to pay for eligible medical expenses now or save it for future expenses and earn interest. You also have the option to invest a portion of your unused VEBA dollars.
Active employees
As an active employee, your
employer can establish a VEBA to work with your health plan. You can use
money in your VEBA account to pay health plan deductibles, co-pays and
co-insurance as well as prescription drugs and some insurance premiums.
If you do not spend the money by year-end, your balances will be rolled
over, allowing you to accumulate funds over time and save for health
expenses in retirement or post-employment.
You will be able to use the VEBA account to pay for eligible medical expenses, including the premium cost for continuing employer-provided health coverage or Medicare coverage. Medical expenses reimbursed by the VEBA account include the cost of deductibles, co-pays or co-insurance and prescription drugs.
Post-retirement VEBA
With a post-retirement VEBA,
your employer can contribute funds to help you, your spouse and eligible
dependents pay for medical expenses after you are no longer employed.
Your employer can make contributions throughout your working life or
convert accumulated severance pay, sick pay and similar longevity-based
benefits into contributions to your VEBA account.
Depend on expertise, leadership and dedication from SelectAccount. After all, we've been helping customers plan, save and pay for health care expenses using personal spending accounts since 1989.
We can help. For more than 20 years, SelectAccount has provided industry leading insight and we're known for our timely, professional service. Call us at 651-662-5065 or 800-859-2144.
If your employer is a member of the Minnesota Service Cooperative VEBA plan, you may be eligible to have a VEBA account to use or save for your eligible health expenses.
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