Frequently Asked Questions
Q: Can I have both an FSA and an HRA?
A: Yes. However, the IRS requires your employer to determine which account is used first – your FSA or HRA. For example, your employer may decide that your FSA funds are to be used first. Your HRA funds will not be used until all the money is spent from your FSA. Or, your employer may decide the HRA is to be used first. Please see your employer’s plan documents for more information.
Q: Can I use an HRA if I have health insurance?
A: Yes. In fact, the HRA is designed to cover expenses not paid by your health insurance, including co-payments and amounts below the deductible, as well as other medical expenses many health plans don’t cover.
Q: If I use an HRA, can I also deduct healthcare expenses on my tax return?
A: Yes, but be careful. You cannot deduct the same expense for which you have already been reimbursed from your HRA and vice-versa. You should consult with a qualified tax advisor for more information.
Q: How much will be contributed to my HRA?
A: The annual contribution amount and the timing of contributions are determined by your employer. Please see your employer’s plan documents for more information.
Q: What if I have money left in my account at the end of the year?
A: Any unused funds in your account might carry over into the next year. Please see your employer’s plan documents for more information.
Q: Can I contribute to my HRA?
A: The IRS does not allow employees to contribute funds.
Q: What if I use up all the money in my account before the end of the year? Can I contribute more?
A: No. Only your employer can contribute funds to your HRA.
Q: What if I leave the company or retire during the year and still have money in my account?
A: You will be reimbursed for eligible expenses incurred before the date you retired or left the company. However, if you’ve been reimbursed for all the expenses you incurred during employment and still have a balance in your account, you will likely lose those funds. Please see your employer’s plan documents for more information.
Q: How do I get reimbursed?
A: It’s simple. Pay for eligible expenses with cash, a personal check, check card or a credit card. Then submit a reimbursement form (available when you login into your online account) with the appropriate documentation, such as an itemized receipt. SHPS will process your request promptly and reimburse you either through a direct deposit into your bank account or send you a check.
You might be able to use a SHPS Spending Account Card. If your employer has opted to provide a Spending Account Card, you will receive one automatically before the beginning of the plan year.
Also, some employers without the SHPS Spending Account Card have arranged for SHPS to receive information that allows SHPS to reimburse you directly without sending in a reimbursement form. Your employer can tell you if this applies to your HRA plan.
Q: When can I start submitting requests for reimbursement?
A: Requests for reimbursement can be submitted at the start of your plan year. For example, if your plan year starts on January 1, you may submit a reimbursement request for expenses incurred from that date.
Q: What is the deadline for submitting a reimbursement request?
A: You can submit a reimbursement request at any time during the same plan year you incur the expense. You might also have a grace period following the end of the plan year—usually three months from the end of your employer’s plan year. Example: You buy a prescription in May 2007 and your employer’s plan year ends on December 31, 2007. You have until March 31, 2008 to submit a reimbursement claim for that expense. Please see your employer’s plan documents for more information.
Q: What is the turn around time for processing a reimbursement request?
A: The normal turn around time for processing reimbursement requests is 3 to 6 business days from the date your reimbursement request is received.
Q: Where can I obtain additional reimbursement forms?
A: You may download forms by logging into your online account.
Q. How can I check on the status of my reimbursement?
A: You may check the status of your request by calling 1-800-678-6684 or by logging into your online account.
Q: How do I receive my reimbursements by direct deposit?
A: You may sign-up for direct deposit online by logging into your online account or download the direct deposit enrollment form here.
Q: What should I do if I close or change my bank account and have direct deposit with SHPS?
A: You should notify SHPS immediately of any changes in your account, such as account closure or change in account number by calling customer service at 1-800-678-6684.
Q: How long does a direct deposit take to be posted to my bank account?
A: The standard turn around time for deposit into your account is 48 hours from the time SHPS transmits the amount.
Q: My request for reimbursement was denied. What do I need to submit?
A: You will be notified of the reason your request was denied either by e-mail or postal mail. Sometimes the expense may not be listed as an eligible expense. Other times SHPS may need additional documentation. The SHPS Eligible Expense Guide will tell you about the necessary documentation.
Q: What is a Letter of Medical Need or Doctor’s Statement?
A: Some expenses might generally be considered ineligible unless prescribed by a doctor. In those cases, you will need a letter or statement from your medical provider detailing the type of service rendered and the treatment necessary. A doctor’s statement form can be found in the SHPS Eligible Expense Guide.
Q: Are over-the-counter (OTC) medicines an eligible HRA expense?
A: While the IRS allows OTC medicines in general, most employers do not. Please see your employer’s plan documents for more information about what is covered under your specific HRA.
Q: Where can I find a list of eligible expenses?
A: See the SHPS Eligible Expense Guide for a detailed list. However, HRA eligible expenses vary by employer. Please see your employer’s plan documents for more information about what is covered under your specific HRA.
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