2006-041-RES-Health Reimbursement

Home Browse Search

ARTICLE V. BENEFITS OFFERED AND METHOD OF FUNDING 5.1 Benefits Offered When an Eligible Employee becomes a Participant in accordance with Articles III and IV, an HRA Account will be established for slIch Participant to receive Benefits in the form of reimbursements for Medical Care Expenses, as described'in Article VI. In no event shall Senefits be provided in the form of cash or any other taxable or nontaxable benefit other than reimbursement for Medical Care Expenses. 5.2 Employer and Participant Contributions a. Employer Contributions. The Employer funds the full amount of the HRA Accounts. b. Participant Contributions. There are no Participant contributions for Benefits under the Plan. c. No Funding Under Cafeteria Plan. Under no circumstances will the Benefits be funded with salary reduction contributions, employer contributions (e.g., flex credits) or otherwise under a cafeteria plan, nor will salary reduction contributions or employer contributions be treated as Employer contributions to the Plan. ' 5.3 Funding This Plan All of the amounts payable under this Plan shall be paid from the general assets of the Employer. Nothing herein will be construed to require the Employer or the Administrator to maintain any fund or to segregate any amount for the benefit of any Covered Individual, and no Covered Individual or other person shall have any claim against, right to, or security or other interest in any fund, account or asset of the Employer from which any payment under this Plan may be made. There is no trust or other fund from which Benefits are paid. ARTICLE VI. HEALTH REIMBURSEMENT BENEFITS 6.1 Benefits The Plan will reimburse Participants for Medical Care Expenses up to the unused amount in the Participant's HRA Account, as set forth and adjusted under Section 6.4. 6.2 Eligible Medical Care Expenses Under the HRA Account, a Participant may receive reimbursement for Medical Care Expenses incurred during a Period of Coverage. a. Incurred. A Medical Care Expense is incurred at the time the medical care or service giving rise to the expense is furnished, and not when the individual incurring the expense is formally billed for, is charged for or pays for the medical care. Medical Care Expenses incurred before a Covered Individual first becomes covered by the Plan are not eligible. b. Medical Care Expenses Generally. "Medical Care Expenses" means expenses incurred by a Participant or by his or her Spouse or Dependents for medical care, as defined in Code 9 213 (including, for example, amounts for certain hospital bills, doctor and dental bills and prescription drugs). Reimbursements due for Medical Care Expenses incurred by the Participant or the Participant's Spouse or Dependents shall be charged against the Participant's HRA Account. c. Cannot Be Reimbursed or Reimbursable From Another Source. Medical Care Expenses can only be reimbursed to the extent that the Participant or other person incurring the expense is not reimbursed for the expense (nor is the expense reimbursable) through the Health Benefits Plan, other health coverage or any other accident or health plan (but see Section 6.8 if the other health plan is a Health Flexible Spending Account). If only a portion of a Medical Care Expense has been reimbursed elsewhere (e.g., because the Health Benefits Plan imposes copayment or deductible limitations), the HRA Account can reimburse the remaining portion of such Medical Care Expense if it otherwise meets the requirements of this Article VI. 6.3 Maximum Benefits a. Maximum Benefits. The maximum dollar amount that may be credited to an HRA Account for an Employee who participates for an entire 12-month Period of Coverage shall be determined by the Employer. Unused amounts may be carried over to the next Period of Coverage, as provided in Section 6.5. Page 5