Health Care

NO Image:

I qualified for and am receiving the HRA contribution of $50 and the spouse contribution of $125. Will I still receive these HRA contributions?

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.

Posted in: Health Care

What happens if I do not opt-out of the HRA?

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.

Posted in: Health Care

I purchase health insurance on a public healthcare exchange and receive federal tax subsidies. Will the HRA affect these subsidies?

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.

Posted in: Health Care

I am a Medicare-eligible retiree, but my spouse qualified for the $125 additional HRA contribution. Will my spouse receive the HRA?

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.

Posted in: Health Care

What retirees are eligible for the RHC Trust?

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.

Posted in: Health Care

What is Eligible?

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. 

Acne treatment*  Compression stockings Humidifiers Physical therapy
Acupuncture Contacts & solutions  Immunizations Pregnancy test
Allergy & Sinus medication Contraceptives Incontinence Supplies Prenatal vitamins
Antacids* Copays Individual Counseling Prescription drugs
Antibiotic ointment* CPAP machine Insect bite treatment* Prescription glasses
Anti-diarrheal* Crutches  Lab work  Reading glasses Respiratory
Antifungal foot cream* Deductibles Lactation Consultant Treatments*
Anti-gas medication* Dental services Lactose intolerance pills* Saline nasal spray
Anti-itch cream/gel* Diabetic supplies Laser eye surgery Sleep Aids & Sedatives*
Antiseptic* Diaper rash ointment* Laxative*  Sleep deprivation treatment
Asthma treatment* Digestive Aids* Lice treatment products* Smoking cessation products*
Bandages/gauze Drug addition treatment  Massage Therapy Smoking cessation programs
Birthing classes or Lamaze Ear wax removal kits Medical records Speech therapy
Blood pressure monitor Eye drops  Motion sickness relief* Sterilization procedures
Braces (knee,ankle,wrist) Feminine Anti-Fungal/Anti-itch* Nasal strips Stool Softener*
Breast pump Fertility Monitor Naturopathic visits Thermometer
Burn cream* Fertility Treatment Orthodontia Throat lozenges*
Chiropractic services Flu Shots Orthotics Vision Care 
Coinsurance Hearing aids & supplies Oxygen and equipment  Walker
Cold/hot pack Hemorrhoid medication* Pain relievers* Wart treatment*
Cold sore treatment* Hormone therapy  Parasitic treatment* Wheelchair & repair
Cold/cough medicine* Hospital fees Physical exams X-rays

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.

Airborne Funeral expenses Late fees Electric toothbrush/picks
Books  Gym membership Liposuction Teeth whitening
Boutique practice fees  Hair transplant Marijuana Toiletries
College Insurance Household help Marriage Counseling Veneers
CPR classes Hygiene products Massage chair Warranties
Electrolysis/laser hair removal Illegal operations/substances Mattress  
Facelift Imported OTC items Missed appointment fee  
Finance charges Imported prescription Hair growth products   

Posted in: Health Care

I want to opt out of the HRA plan so I can continue to receive federal tax credits on the public exchanges. What do I do?

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:

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

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

Posted in: Health Care

What is the RHC Trust?

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 Police & Fire RHC Trust are:


Chet Opolski

Floyd Allen

Tom Sheehan


John Clark
Vice Chair

Don Taylor

Shirley Berger


Andy Dillon

John T. Barr

Aaron Castle
General Counsel

Posted in: Health Care