Friday, February 18, 2022
How to Earn Tax-Free Credits to Your HRA
and RHRA Accounts with the New Plus Medical Plan
The new Plus Medical Plan offers benefits such as $45 copays for specialist visits. In addition, you can earn credits from American Airlines every year in both a Health Reimbursement Arrangement (HRA) Account and a Retiree Health Reimbursement Arrangement (RHRA) Account by receiving a preventive care exam.
If you get a preventive care exam, you will earn credits from American Airlines.
- American will credit $500 to your HRA, which you can use while you are an active employee. Unused HRA credits will roll over into the RHRA when you retire, as long as you are 65-point plan-eligible.
- American will credit $1,000 to your RHRA, which you can use after you retire.
- Credits to both types of account are tax-free. The credited amount is not taxed when it is added to your account or when you spend it on eligible health care expenses.
- Your HRA credits carry over from year to year, and any remaining credits at your retirement — as long as you are 65-point plan eligible — roll over into your RHRA. (To be considered 65-point eligible at American, your age plus a minimum of 10 years of credited service at American must add up to 65.)
Preventive Care Exam Tips
- When you schedule your exam, specifically ask for an annual preventive exam. This helps to ensure that your appointment is covered at 100%.
- If you need help finding an in-network provider, call your Accolade health assistant at 833-346-3939, Monday through Friday, from 7am until 10pm (CT), or log in to the member portal via my.aa.com/accolade to chat with your dedicated Accolade health assistant.
Using your HRA and RHRA Accounts
- The HRA and RHRA are similar to Flexible Spending Accounts (FSAs). You can use HRA and RHRA credits to pay for eligible health care expenses, including deductibles, copays and coinsurance, for you, your spouse, and eligible dependents.
- RHRA credits can also be applied to certain insurance premiums, such as those for COBRA, Medicare, and long-term care.
- If at any time you move from the Plus plan to another option (except the Core option), you will still be able to access the credits. If you move to the Core option and make contributions to a health savings account, you can still use your HRA — it is just limited to dental and vision expenses.
How to Access Your HRA Credits
- Your credits will be deposited in your HRA and RHRA about a month after your preventive exam. This allows time for your provider to submit all claims and report to Alight Smart-Choice Accounts.
- Go to my.aa.com > Benefits Service Center > Reimbursement Accounts. You will notice a Retiree Health Reimbursement Arrangement with a dormant balance, and a Health Reimbursement Arrangement with a 2022 available balance.
- If you already have a Smart Choice debit card, you will be able to use this same card to pay for medical expenses with credits from your HRA. If you do not yet have a card, one will be sent to you after the credits are deposited in your HRA. Please allow up to 4 weeks for your card to arrive.
- You also have the option to be reimbursed for eligible medical expenses. Learn about the many ways you can do this by clicking here.
- If you have a Flexible Spending Account (FSA) in addition to an HRA, funds from your FSA will be used before your HRA credits. Unused HRA funds do not expire as long as you are employed at American Airlines.
APFA National Health Chair