What can VEBA funds be used for?
Medical expenses that can be reimbursed through your VEBA include services and supplies incurred by you or your eligible dependents for the diagnosis, treatment or prevention of disease or for the amounts you pay for transportation to get medical care.
How does VEBA work with Medicare?
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.
What is covered by VEBA?
Medically necessary equipment or supplies. Dental procedures (non-cosmetic) Vision care expenses, such as eye exams, eyeglasses/contacts, lens solution, laser surgery. Individual insurance premiums (i.e., dental, vision, long-term care) not under the Affordable Care Act.
What is the difference between a VEBA and an HSA?
The main difference between a VEBA and an HSA is how they're funded. VEBAs are funded only by the employer in most cases, while HSAs can be funded with employer and employee contributions.
What is VEBA plan?
A Voluntary Employees' Benefit Association account (VEBA) is a tax-free health care savings plan funded entirely by your employer. As soon as your employer contributes to your VEBA account, the money belongs to you. You pay no taxes on the balance, the interest earned, or on withdrawals.
How do I use my VEBA card?
Just use your card to instantly pay medical care expenses directly from your health reimbursement arrangement (HRA).
- No monthly card fee.
- Spend up to 90% of your HRA balance every day ($3,000 daily limit)
- Request separate cards for your spouse or dependents (one-time charge of $1 per card)