Public sector employers face challenges with rising health care costs and complying with Government Accounting Standards Board Statement 45 (GASB 45).
OptumHealth Financial Services offers two accounts designed specifically for public-sector employees:
- A funded health reimbursement account (FHRA) is a fully integrated, tax-free defined contribution solution.
- A hybrid notional HRA combines the security of an irrevocable trust with the flexibility of notional HRAs.
Benefits for your organization
- GASB 45 administration — An account-based solution can reduce or eliminate the need to report future retiree health care liabilities.
- Debt rating protection — By prefunding all or part of your other post-employment benefit (OPEB) liabilities, you may reduce the effect on your debt ratings.
- Expert plan design — We design a solution that is right for your employees and retirees.
- Claims and payments handled by us —Our full range of administrative services allows you to focus on your work.
Benefits for retirees
- Tax savings — Contributions and interest are not added to taxable wages and distributions are tax-free when used for qualified medical expenses.
- Trust protection — Funds are placed in a trust, protecting assets.
- Survivor protection — If a participant dies, the funds may be transferred to the surviving spouse or dependents to pay for their medical expenses.
- No age restrictions — Distributions for qualified medical expenses can be taken at any time following retirement, regardless of age.
Find out the options for retiree health care
Call 1-866-427-6804 or e-mail engage@optumhealth.com to reach an employer relations representative.
