The Plus plan works a lot like the Standard medical option with added advantages — you have copays for specialist visits, and you can earn credits from the company in both a health reimbursement arrangement (HRA) and a retiree health reimbursement arrangement (RHRA)1.
If you get a preventive care exam during the year, you earn credits from American.
- American will credit $500 to your HRA, which you can use while you are an active team member.
- American will credit $1,000 to your RHRA, which you can use after you retire. Unused HRA credits will roll over into the RHRA when you retire, so long as you are 65-point plan-eligible.2
Credits to both types of account are tax free. The credited amount is not taxed when it is added to your account or when you spend it on eligible health care expenses.
Using your HRA and RHRA
The HRA and RHRA are similar to flexible spending accounts. You can use HRA and RHRA credits to pay for eligible health care expenses, including deductibles, copays and coinsurance, for you, your spouse and eligible dependents.
Unlike several other types of tax-advantaged accounts, RHRA credits can also be applied to certain insurance premiums, such as those for COBRA, Medicare and long-term care.
If at any time you move from the Plus plan to another option (except the Core option), you’ll still be able to access the credits. If you move to the Core option and make contributions to a health savings account, you can still use your HRA — it’s just limited to dental and vision expenses.
How to access your HRA credits
Your credits will be deposited in your HRA and RHRA about a month after your preventive exam. This allows time for your provider to submit all claims and report to Alight Smart-Choice Accounts.
If you already have a Smart-Choice debit card, you’ll be able to use this same card to pay for medical expenses with credits from your HRA. If you do not yet have a card, one will be sent to you after the credits are deposited in your HRA. Please allow up to 4 weeks for your card to arrive.
You also have the option to be reimbursed for eligible medical expenses. Learn about the many ways you can do this on Jetnet.
If you have a flexible spending account (FSA) in addition to an HRA, funds from your FSA will be used before your HRA credits, as the latter don’t expire as long as you’re employed at American.
1 Available through a separate RHRA plan.
2 You are considered 65-point-plan eligible when your age plus a minimum of 10 years of credited service at American adds up to 65.