FAQ's

You will be automatically enrolled in the HRA and your account will be credited each month in the amount of your current stipend. Failure to opt-out in writing will result in your default enrollment in the RHC Trust's HRA coverage and as such, if you are currently purchasing health insurance on a public healthcare exchange, HRA coverage through the RHC Trust will be considered "other health coverage" and may result in your ineligibility for federal tax credits on the public exchanges.

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Please be aware that HRAs are considered to be group health plans within the meaning of Internal Revenue Code § 9832(a); Section 733(a) of the Employee Retirement Income Security Act of 1974 (ERISA); and Section 2791(a) of the Public Health Service Act. If you are currently purchasing health insurance on a public healthcare exchange, HRA coverage through the RHC Trust will be considered "other health coverage" and may result in your ineligibility for federal tax credits on the public exchanges. Therefore, if you are currently receiving federal tax credits, you may want to opt-out of coverage under the RHC Trust in order to preserve your eligibility for such tax credits on the public health exchanges.

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Yes, you may continue to receive HRA contributions, however you will be asked to verify that you still meet the program qualifications for the HRA contributions.

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In this instance, an HRA will be set-up in the name of the retiree and will be credited each month with the amount of the additional spouse HRA contribution.

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Former City of Detroit employees who retired with a City pension on or before December 31, 2014 and who were either a) enrolled with City retiree health benefits as of February 28, 2014 or as a spouse on a City health benefit or b) transitioned from active City benefits to retiree City benefits on or after November 1, 2013. Surviving spouses and surviving children currently receiving or would be eligible to receive a duty-death or survivor pension with respect to a retiree who would have qualified as an eligible retiree in the RHC Trust.

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You may elect to opt-out at any time, by providing written notification of your election to opt-out to the Benefits Administration Office. Your opt-out notification should be directed to Benefits Administration as follows:

ABS
8220 Irving Road
Sterling Heights, MI 48312
(800) 645-9978

Note that verbal requests to opt-out of the HRA will not be accepted.

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A Health Reimbursement Arrangement (HRA) can cover a wide variety of expenses. We've assembled a list of common expenses that are eligible for reimbursement. Not all eligible items are on this list. For more exhaustive list, visit our website at www.irs.gov/pub502.

Eligible Health Care Expenses

Items marked with an asterisk (*) are considered over-the-counter (OTC) medicines or drugs and require a prescription for reimbursement. 

Healthcare Premiums - Medicare Supplemental, Medicare Advantages and Medicare Part D.

Additional Documentation Required

Certain medical expenses are not reimbursed under a Health Reimbursement Arrangement (HRA) unless a licensed health care practitioner states that the service or product is medically necessary.

Ineligible Heath Care Expenses

The following expenses are not eligible under a Health Reimbursement Arrangement (HRA). Under no circumstances will the following items be reimbursed. Please do not submit claims for these items.

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The RHC Trust was established under the Plan for the Adjustment of Debts of the City of Detroit to provide health benefits to certain eligible former City of Detroit employees.The RHC Trust is established as a tax-exempt voluntary employees beneficiary association (VEBA) under Section 501(c)(9) of the Internal Revenue Code, as amended. Pursuant to Section 501(c)(9) of the Internal Revenue Code and Section 2.1 of the RHC Trust Agreement, the RHC Trust is limited to providing health and welfare type benefits to eligible retirees and their beneficiaries.

The Board of Trustees for the PFRHC are:

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