Health Reimbursement Arrangements (HRA)

TASC is the third party administrator for the Health Reimbursement Account (HRA). 

Contact TASC for questions regarding eligible expenses, claim submission, documentation requirements for expenses, or the status of claims & reimbursements. 

• Customer Service:  877-401-9807, Monday through Friday: 5:30 a.m. to 6:00 p.m. (PST)
• 24/7 online account access https://www.tasconline.com/
• Automated account information available toll-free: 800-422-4661
• Fax Number: 608-661-9601

Contact the Human Resources Benefits Unit for questions regarding electronic enrollment through Employee Self-Service, enrollment eligibility, change in election due to a qualifying event, or to update/change your mailing address.

• (707) 565-2900 or
• E-Mail:  benefits@sonoma-county.org

County contributions ceased in 2016 based on the terms of the bargaining unit's Memorandum of Understanding (MOU) or Salary Resolution. The Active HRA was established for the benefit of eligible employees enrolled in a County sponsored medical plan. The County contributions varied by bargaining unit and the level of coverage (self, self +1, and self+2) you were enrolled in at the time of the contribution.

Funds in an Active HRA automatically rollover into the next calendar year and continue rolling over each year, even after employment ends, until funds in the account are exhausted.

The Retiree HRA was established for the benefit of eligible employees hired on or after January 1, 2009. In general, when a full-time employee becomes eligible after a 2 year qualification period, the County will make a one-time lump sum contribution of up to $2,400 deposited into an HRA account established in their name. The contribution for eligible part-time employees is pro-rated. Each pay period following the initial contribution, the County will contribute a certain amount according to your MOU or Salary Resolution for every paid hour up to a maximum of 80 hours biweekly (excluding overtime).

During the qualification period, allocated contributions will be held in a trust account. If an employee separates employment before meeting the eligibility requirement, the employee shall receive no benefit.

The funds in the Retiree HRA are restricted, and can only be accessed upon; termination of employment and attainment of age 50, or retirement from SCERA, whichever is earlier, and after the participant notifies the Benefits Unit to transfer their funds to the Retiree HRA for Retirees.

Retiree is eligible to enroll in a County-sponsored plan at retiree’s own expense and to receive a $500 monthly contribution to the Retiree HRA. Not eligible for Medicare Part B Reimbursement. Enrollment in a County-sponsored plan is not required to receive the monthly HRA contribution.

Retiree is eligible to enroll in a County-sponsored plan at retiree’s own expense and to receive a $500 monthly contribution to the Retiree Medical Trust. Not eligible for Medicare Part B Reimbursement. Enrollment in a County-sponsored plan is not required to receive the monthly contribution to the Retiree Medical Trust.

The County has reached a settlement of the above-entitled litigation involving SCARE. Details regarding the proposed settlement can be found on the SCARE website at:  http://www.sonomacountyretirees.com/legal.shtml

The proposed settlement covers current retirees who retired through June 30, 2016 and only impacts those retirees who were hired by the County before January 1, 2009.

Employees hired before January 1, 2009 and who are still actively employed, and recent retirees who retired on or after July 1, 2016 are not impacted by this proposed settlement.  Retiree medical benefits for these individuals continue to be subject to the applicable memoranda of understanding and/or the Salary Resolution.

Out-of-pocket medical, dental, and vision care expenses including insurance co-pays, deductibles and other expenses not usually covered by the County-sponsored health plan such as: acupuncture, chiropractic, laser eye surgery, etc.

See IRC Section 213(d) or current IRS publication 502 (PDF), or refer to the TASC Eligible Expenses list.

May be used to pay premiums for long-term care insurance, and COBRA continuation of coverage for participating employee and IRS eligible dependents.

HRA accounts are funded with employer contributions at rates set by the Memorandum of Understanding (collective bargaining agreement), the Salary Resolution. or the SCARE Settlement Agreement.

There is no maximum limit on contributions under HRA rules.

HRA can only be funded by employer money and employer contributions cease when employment ends.

Contributions to HRAs are not subject to income or payroll taxes at the Federal or California State level (individual state laws may vary).

HRA reimbursements for IRS eligible medical and dental care expenses are not subject to income or payroll tax.

HRA funds cannot pay for non-medical benefits or make cash-outs of unused amounts.

Recent DOL regulation guidance requires HRAs for active employees (Retiree-Only HRAs exempt) to be integrated with an employer-sponsored medical plan that meets the minimum value requirements of the Affordable Care Act. The HRA and the medical plan must be provided by the same employer.

Sonoma County’s HRA operates on a calendar year basis, Jan 1-Dec 31.

Funds not used in a year may be carried over to future years allowing unused amounts to accumulate without a use-it-or-lose-it rule, remaining available even after employment ends so long as funds are available.

If the balance in the HRA is low in one year, expenses can be accumulated and reimbursed in the following year when funds are sufficient to cover (if the person was also a participant in the HRA plan the year the expense was incurred).

Funds can be accumulated to save to help pay a large expense (e.g. LASIK, orthodontia, retiree medical costs, etc.)

Most health care premiums paid through payroll deduction by Sonoma County employees are paid on a pre-tax basis through a Premium Conversion plan. This means your gross wages are reduced by the amounts you pay for health insurance premiums before taxes are calculated, thereby reducing your taxable wages and thus lowering the taxes due. Premiums paid with a tax benefit such as this are not eligible for HRA reimbursement.

Pursuant to IRS regulations eligible dependents are as follows: your spouse, your own child, your stepchild, adopted child, child lawfully placed for adoption, or eligible foster child, regardless of the child’s marital or student status or whether or not the child is claimed as a dependent on your taxes (up to age 26).

No, unless the domestic partner and/or their child(ren) are also a qualified dependent as defined by IRS Code Section 152. To be an IRS Qualified Dependent a dependent must fall into one of two categories defined by the IRS. They must either be a Qualifying Child, or a Qualifying Relative. There are specific tests that must be met under both categories for them to be considered IRS Qualified Dependents. Refer to the Overview of the Rules for Claiming an Exemption for a Dependent in IRS Publication 17 on the IRS website.

Affordable Care Act regulations require employees to be enrolled in their employer’s medical plan to be eligible for an HRA. Refer to your Memorandum of Understanding for details about your eligibility.

Employees are immediately vested 100% in the employee HRA and can begin using it as soon as there are funds in your account. Only eligible expenses incurred (based on date service was received) on or after 1/1/2013, are eligible for reimbursement.

Contributions have been made retroactively for all pay periods after 3/19/2013, per the SEIU MOU and Salary Resolution.

No, funds in an HRA automatically roll over into the next calendar year and continue rolling over each year until funds in account are exhausted, even after employment ends.

Survivor benefits are as specified in the plan document. In general, spouses and eligible dependent children or dependent adults that are disabled may continue to access account balances after the death of the retiree subject to the limitations and maximums as stipulated by law.

Domestic partners are not permitted access to the account balances of the participant at this time by virtue of restrictions in the federal regulations that govern these types of accounts.

The list of health expenses that are eligible for reimbursement from an HRA and Health FSA are almost identical. The only difference is that you can be reimbursed from your HRA for your non-employment related health plan premium costs paid on an after tax basis, such as, COBRA premiums, retiree medical plan premiums, and Medicare Part B premiums. However these expenses are not eligible for reimbursement from your FSA. Since your FSA has a “use it or lose it” provision that does not exist in your HRA, submit your eligible health expenses (excluding premiums) to your FSA first to help ensure you don’t have money left in your account and “lose it” at year end. You may only be reimbursed from one account or the other for each expense, not both. However, you can submit qualified expenses for reimbursement from your HRA once your FSA funds have been fully exhausted and for eligible health plan premium expenses.

You can find forms and informational guides on TASC's website at www.tasconline.com/uba_new_participant/

The information provided is a summary of your benefits under the County offered Health Reimbursement Arrangement. For more detailed information review the plan document, your Memorandum of Understanding, and/or the Salary Resolution as applicable.

In the case of conflict between the information presented in this summary and the plan document or MOU/Salary Resolution, the plan document and/or MOU/Salary Resolution determines the coverage.

The County makes no representations or warranties in regard to the tax treatment of the HRA, including whether any portion of the HRA is taxable by the Internal Revenue Service or the Franchise Tax Board.