Attention OPERs Members: Here’s What You Need to Know About ICHRA
On January 1, 2022, Ohio’s largest pension system, the Ohio Public Employees Retirement System (also known as OPERS) eliminated the pre-Medicare retiree group plan, which would have run out of money for retirees by 2030.
The pension system is primarily funded by employee and employer contributions. Though employer contributions previously financed a large portion of the health fund, this stopped in 2018 so that money could be allocated to the pension benefits as mandated by law. To keep the OPERS health fund solvent, the plan was replaced by a medical stipend program known as an Individual Health Reimbursement Arrangement, or ICHRA.
The base allowance amount for pre-Medicare retirees will be $1,200 from 2022 through 2024. The base allowance amount will then be re-evaluated based on market conditions and funding. Allowance percentages and monthly HRA deposits will range from 51 percent ($612 per month) to 90 percent ($1,080 per month) of the base allowance amount. These tax-free monies can only be reimbursed if the member enrolls in a qualified health plan.
Items for reimbursement include:
- Post-tax monthly insurance premiums
- Deductibles
- Coinsurance and copays
- Qualified medical expenses
Click here for more information regarding these funds.
OPERs members have many options when it comes to choosing an individual plan through an ICHRA. When you’re shopping the individual marketing, timing is key. Open Enrollment on the individual marketplace occurs at the end of each calendar year, lasting about ten weeks. But clients can enroll outside of that period if they have a qualifying event such as loss of employment, having a child, or getting married. Retiring from one’s employment is also considered a qualifying event. Please note: Unfortunately, by participating in the OPERs program, you will not be eligible for a health insurance subsidy.
The experts at ARC are available to help you find a plan through the Marketplace that works for your budget. Give us a call today and we will help make the transition easy for you.