PAY FOR FUTURE HEALTH CARE VantageCare RHS PROGRAM Date: Presented by: AC: 29104-0916-8498-W1175/W1176 This presentation is the property of ICMA-RC and may not be reproduced or redistributed in any manner without permission.
HEALTH CARE COSTS KEEP RISING – More than worker wages and inflation 1 Likely to be a big ongoing expense in retirement….How will you pay for it? 1 Source: Kaiser Family Foundation, http://kff.org/health-costs/
WHAT ABOUT MEDICARE? OUT OF POCKET COSTS Premiums 1. Medicare pays for only about Copayments & Coinsurance 2. 60% of total costs 1 Deductibles 3. And Medicare doesn’t cover most dental, hearing, vision, and long-term care expenses 1 Source: “Amount of Savings Needed for Health Expenses for People Eligible for Medicare”, Employee Benefits Research Institute (Oct. 2015). References 2012 data for Medicare beneficiaries age 65 and older.
HOW MUCH MIGHT YOU NEED? Get an estimate www.icmarc.org/health
RETIREMENT HEALTH SAVINGS (RHS) PROGRAM Helps you pay for future health-care costs Covers you, your spouse, and dependents Tax advantages Sponsored by your employer, administered by ICMA-RC 5
HOW IT WORKS CONTRIBUTIONS Your employer determines who contributes INVESTMENTS You control, choosing from available funds REIMBURSEMENTS You request, for qualifying health expenses AFTER YOUR DEATH Assets may transfer to eligible survivors
TAX BENEFITS $ PRE-TAX PRE-TAX PRE-TAX EARNINGS EARNINGS EARNINGS CONTRIBUTIONS CONTRIBUTIONS CONTRIBUTIONS Withdrawals for build up tax-deferred build up tax-deferred build up tax-deferred qualifying expenses are TAX-FREE $
INVESTMENTS – CHOOSE YOUR APPROACH I want a simple, yet I want to build diversified portfolio – my own portfolio – choose a target-date choose individual or target-risk fund stock and bond funds
WITHDRAWALS Request reimbursements – you, or eligible survivors, must… Be eligible for benefits* Have qualifying benefits* Submit necessary Separated from service Medical, Dental, Vision forms, supporting Reached retirement age Insurance Premiums documents Disabled Medical Out-of-Pocket Expenses Medicare Part B/D Premiums MOST CLAIMS – 10 DAY TURNAROUND TIME MOST CLAIMS – 10 DAY TURNAROUND TIME * Examples of typical RHS plan rules. Actual plan rules may differ based on employer-determined provisions.
KEY RESOURCES Learn more about RHS – www.icmarc.org/rhs Your ICMA-RC REPRESENTATIVE Claims questions – MERITAIN HEALTH Manage your RHS account online – www.icmarc.org/login
QUESTIONS? 11
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