• Employees Can Opt Out of a Health Reimbursement Arrangement (HRA)

    About the Rule 

    Each year, employees must be given the option to opt-out of and waive future reimbursements from the HRA. In addition, upon termination of employment, an employee may either forfeit the remaining balance of the HRA or permanently opt-out and waive future reimbursements.

    The Internal Revenue Service (IRS) requires the opt-out option per Notice 2013-54. The benefits provided by an HRA generally will be considered minimum essential coverage, and could disqualify an individual from being eligible for a premium tax credit under the Marketplace Exchange. 

    How PacificSource Administrators Helps 

    PacificSource Administrators will assist with informing former employees about the HRA opt-out option. Thirty days prior to the start of the new plan year, we will mail a letter to former employees currently enrolled in an HRA spend down account. Employers will receive a list of recipients for their records.

    Following this mailing, employers are responsible for providing the HRA opt out form to employees who are newly termed or moved to an HRA spend-down account.

    The Health Reimbursement Arrangement Opt-out Form is available on our website in Employer Forms and Materials > Flex Forms for Members. 


    You're always welcome to contact us!

    PacificSource Administrators
    110 International Way
    Springfield, OR 97477

    Sales and Service: PSAsales@pacificsource.com 
    Flex Benefits: PSAcustomerservice@pacificsource.com
    COBRA Benefits: COBRA@pacificsource.com

    (541) 485-7488 or toll-free (800) 422-7038  
    Fax (541) 485-8759 or toll-free (800) 575-1109