What is a VEBA?
A VEBA is a Voluntary Employees' Beneficiary Association, which is an IRS-regulated tax-exempt trust for funding health benefits for public employers and their employees.
Here's how it works:
- STMA contributes tax-free dollars to your VEBA account.
- Employees are not allowed to contribute to their VEBA account but can use it in conjunction with a medical flexible spending account to cover all out of pocket health care expenses.
- You can use your VEBA account to pay for Eligible Medical Expenses that aren't covered by your health plan like deductibles and coinsurance, dental care, orthodontia, and vision plus some Over-The-Counter Medical Expenses
- Your VEBA account, is individually owned so the money stays with you even if you change jobs or retire.
- You pay no taxes on the money when it goes into your account or when you use it for eligible health care expenses.
- No "use it or lose it." Money not used in one year rolls over and is added to your balance the next year.
- Your VEBA works with your high deductible health plan so you receive reimbursements to pay your health care expenses automatically or have the option to use a VEBA debit card to pay them.
- Online tracking of contributions and disbursements at www.selectaccount.com or www.bluecrossmn.com View the Select Account website tutorial
You are automatically enrolled in a VEBA savings account when you sign up for VEBA health insurance.