VEBA FAQs

What is the State of Montana VEBA Health Reimbursement Account?

This is a post-retirement health reimbursement plan.

What is a VEBA and what are the tax objectives?

VEBA stands for “Voluntary Employees’ Beneficiary Association” and is a tax-exempt trust authorized by Internal Revenue Code Section 501(c)(9). The tax objective of this type of plan are to enable your employer to make tax-free deposits on your behalf to the Plan, to credit you’re account with tax-free investment earnings and to enable you to obtain tax-free reimbursements for your qualified medical expenses and insurance premium payments.

You do not report Montana VEBA HRA contributions, earnings, or benefit payment on your individual 1040 federal income tax form.

Why should I participate in the Montana VEBA HRA?

A Montana VEBA HRA account produces a source of funds to pay for the cost of health care expenses for you, your spouse and your qualified dependents. A Montana VEBA HRA account may be used to pay qualified post-retirement medical, dental or vision out-of-pocket expenses (deductibles, copayments, etc) plus premiums for post-retirement medical, dental or vision insurance, Medicare Part B, Medicare supplement plans and tax-qualified long term care insurance premiums.

Can my Montana VEBA HRA automatically pay for my insurance premiums?

Yes. Simply complete the Montana VEBA HRA Systematic Payment Form and the Plan Administrator will mail a check each month to our insurance company.

What happens if I die before my Montana VEBA HRA account is used up?

How are the Montana Veba HRA Funds invested?

You may choose from among investment funds provided on the enrollment form. You may ave your Montana VEBA HRA funds invested in any combination of the listed investment funds and you may cha ge your investment allocations as often as monthly.

Will I receive a statement of my account?

Yes. You will receive semi-annual statements detailing all activity in your account. You may also call or email the Plan Administrator with a request for additional statements at any time.

Who is the Montana VEBA HRA Third Party Administrator?

REHN & Associates, Inc. in Spokane, Washington is the Montana VEBA HRA third party administrator. REHN specializes in the administration of VEBA health reimbursement plans. All correspondence, accounting, and benefit payment services are provided by REHN.

Montana VEBA HRA Qualified Expenses/Premiums

Common Qualified Claims:

Premiums:

Medical Insurance

Dental Insurance

Vision Insurance

Long Term Care Insurance

Medicare Part B

Medicare Supplement

Most Common Expenses:

Allowable Over the Counter Drugs

Office Visit Copays

Physician Service Copays

Prescription Copays

Insurance Plan Deductibles

Insurance Plan co-insurance

Other Services and Fees such as:

Acupuncture

Christian Science

Eye Exam

Hospital]

Nursing

Osteopath

Physiotherapist

Surgeons

Anesthetist

Dentist

Gynecologist

Laboratory

Oral Surgery

Physician

Psychoanalyst

Sex Therapist

Chiropractor

Exam, physical

Healing Services

Lip Reading Services for the deaf

Psychiatrist

Psychologist

Specialists

Other Miscellaneous Expenses such as:

Adoption

Air conditioning and air filters used for alleviating illness

Alcoholism and drug treatment center costs

Ambulance hire

Artificial limbs and teeth

Birth control pills

Braille books and magazines

Childbirth classes

Contact lenses]

Dental treatments

Eye Exam

Immunizations

Fertility treatments

Genetic testing

Hearing aids and batteries

Infertility treatment

Laser eye surgery

Lead-based paint removal

Lifetime care at m3edical facility

Medical supplies and equipment

Norplant insertion or removal

Obstetrical expense

Otometris

Organ transplants

Orthodontia

Physical therapy

Prescription medicines

Private hospital room

Retirement home fees

Seeing-eye Dog

Sterilization

Stop smoking programs

Telephone for deaf

Therapy treatments

Transportation expense relative to illness

Vaccines

Vasectomy

Weight loss program

Wheelchair

X-Rays