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Medical expenses that can be reimbursed through your VEBA include services and supplies incurred by you or your eligible dependents for the diagnosis, treatment or prevention of disease or for the amounts you pay for transportation to get medical care.
Common qualified expenses include deductibles, co-pays, coinsurance, and prescription drugs. Retiree medical insurance premiums, including Medicare and Medicare supplement plans, and tax-qualified long-term care insurance premiums (subject to IRS limits) are also eligible for reimbursement.
A VEBA is a tax-free health reimbursement account which can continue year over year (unlike a Flexible Spending Account). A VEBA can be used by you and your eligible dependents to reimburse for qualified health expenses after your retirement (with the exception of Group Two (UW Police Officers below).
Who is eligible for a VEBA? To be eligible for a VEBA plan, your employer must offer one. Also, you must be an active employee and be covered by your employer's health insurance plan to participate in a VEBA.
Eligibility for a VEBA account Your employer must offer a VEBA account in order for you to enroll in it. You must be an active employee and covered under an employer-sponsored medical health plan.
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Using your VEBA account after leaving your employer During retirement, or a transition into retirement, the funds in your account can be used by you, your spouse, or eligible dependents to pay for medical expenses.
Using your VEBA account after leaving your employer During retirement, or a transition into retirement, the funds in your account can be used by you, your spouse, or eligible dependents to pay for medical expenses.
Instead, account members can withdraw funds from their HRA VEBA at any time. The only rule is to use the funds to reimburse an eligible expense. This means employees have more freedom on withdrawals.
ANSWER: VEBA stands for voluntary employees' beneficiary association, a special tax-exempt entity recognized under Code § 501(c)(9). It is essentially a trust established to pay certain benefits\u2014including health benefits\u2014to VEBA \u201cmembers\u201d (generally, current or former employees) or their dependents or beneficiaries.
A VEBA is a tax-free health reimbursement account which can continue year over year (unlike a Flexible Spending Account). A VEBA can be used by you and your eligible dependents to reimburse for qualified health expenses after your retirement (with the exception of Group Two (UW Police Officers below).

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