How to use the Health Accounts to pay for health care in retirement
Once you meet the Retirement Eligibility criteria of your institution's Emeriti Plan, you may use the funds in your Health Accounts to pay for:
- Emeriti Health Insurance Plan Option Premiums
- Qualified Medical Expenses (QMEs) via the Reimbursement Benefit
You may also use the Reimbursement Benefit to pay for other health insurance coverage. It is important to keep in mind that once you elect other health insurance coverage, you may lose your eligibility to enroll in the Emeriti Health Insurance Plan Options later. There are a few exceptions when you or your eligible family members may enroll outside of your initial eligibility period. For additional information about these exceptions, consult your Emeriti Summary Plan Description or call an Emeriti Specialist.
When you enroll in one of the Emeriti Health Insurance Plan Options, the same Emeriti Specialist will work with you to set up your payment method decisions. Even if you do not plan to enroll in any of the Emeriti Health Insurance Plan Options, you may want to contribute to your Health Account to pay for qualified medical expenses including any other insurance premiums, if your Institution's Plan allows employee contributions2. You can call an Emeriti Specialist to:
- Set up automated contributions. You can set up automated contributions from your bank account each month into your Health Account via Automated Clearing House (ACH) to pay for your Emeriti Health Insurance Plan Option premiums and to pay for other qualifying medical expenses through the Reimbursement Benefit.
- Contribute ad hoc lump sums to your Health Account. You direct a lump sum contribution from your bank account into your Health Account by setting up contributions via ACH. After making your initial contribution, you can make additional contributions as frequently as on a quarterly basis (the minimum contribution is $250 per quarter). To set up ACH, review the ACH authorization form, then call 1-866-EMERITI (1-866-363-7484) and an Emeriti Specialist will help you sign up.
If you choose an Emeriti Health Insurance Plan Option but don't have a balance in your Health Accounts, you must pay premiums for the Emeriti Health Insurance Plan Options by setting up electronic transfers with an Emeriti Specialist.
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1 Depending on the organization, your employer's contributions may include amounts in lieu of compensation or other benefits. For example, your employer may have reduced employee salaries, limited salary increases, or reduced contributions to its retirement plan to help finance employer contributions. Such amounts are treated as employer contributions for tax purposes (i.e., they are exempt from tax).
2 Subject to certain restrictions. Under federal law, institutions with 50 or fewer employees cannot allow employee voluntary contributions.
3 In NY, Empire Fidelity Investments Life Insurance Company
4 Guarantees are subject to the claims-paying ability of the issuing insurance company.
Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.
