How Does the OPERS HRA Work in Retirement?
Quick answer: The OPERS Health Reimbursement Arrangement (HRA) is an OPERS-funded account that provides eligible benefit recipients with tax-free reimbursement for qualified medical expenses — including post-tax insurance premiums, deductibles, coinsurance, and copays. The rules differ based on whether you're Pre-Medicare or Medicare-eligible. Pre-Medicare retirees qualify by opting in, while Medicare-eligible retirees must enroll in a Medicare medical plan through Via Benefits to maintain HRA eligibility and receive monthly deposits. For Columbus-area OPERS members, HRA planning should happen before retirement — eligibility, enrollment steps, and Medicare coordination all affect what you actually receive.
Key Takeaways
- The OPERS HRA is a reimbursement arrangement, not a bank account — you generally pay qualified expenses first and request reimbursement.
- Eligibility depends on retirement group, age, service credit, Medicare status, and OPERS health care program rules.
- Pre-Medicare retirees qualify for the HRA by opting in; Medicare-eligible retirees qualify by enrolling in a Medicare medical plan through Via Benefits.
- Medicare-eligible OPERS benefit recipients must enroll in both Medicare Part A and Part B as soon as eligible, then select coverage through the OPERS Connector.
- Common reimbursable expenses include monthly post-tax insurance premiums, deductibles, coinsurance, and copays for the retiree and eligible dependents.
- Healthcare costs — including out-of-pocket costs the HRA doesn't cover — should be modeled into the retirement income plan before retiring.
Table of Contents
- What the OPERS HRA Is
- Who Is Eligible for the OPERS HRA
- What Expenses the OPERS HRA Can Reimburse
- How the HRA Works Before Medicare
- How the HRA Works After Medicare
- The Role of Via Benefits
- Mistakes to Avoid
- How the HRA Fits Into a Coordinated Retirement Plan
- Frequently Asked Questions
What the OPERS HRA Is
The OPERS HRA — Health Reimbursement Arrangement — is an OPERS-funded account that eligible benefit recipients can use for tax-free reimbursement of qualified medical expenses in retirement.
OPERS states that the HRA can reimburse qualified expenses such as monthly post-tax insurance premiums, deductibles, coinsurance, copays, and qualified expenses for eligible dependents. OPERS describes the HRA as an account funded by OPERS that provides tax-free reimbursement for qualified medical expenses.
One important structural point: the HRA is not a bank account you directly control. It's a reimbursement arrangement. You generally pay qualified expenses first and then submit a request for reimbursement from your HRA balance. That distinction matters for cash flow planning — out-of-pocket payments come first, reimbursement comes after.
This article is part of our broader guide to OPERS and STRS retirement planning in Columbus, which explains how the HRA fits with other retirement decisions.
Who Is Eligible for the OPERS HRA
OPERS offers the HRA to benefit recipients who meet certain age and service credit requirements. Eligibility can vary based on retirement group, service credit, age, Medicare status, and the OPERS health care program rules in effect at the time of retirement.
For OPERS employees in Columbus, Ohio, this means confirming eligibility before retiring rather than assuming it. The questions worth working through:
- Am I eligible for OPERS health care coverage based on age and service credit?
- Am I eligible for an HRA allowance, and at what level?
- Will I be Pre-Medicare or Medicare-eligible when I retire?
- What will my monthly HRA allowance be?
- Does my spouse or any dependent qualify for HRA-covered expenses?
- What enrollment steps do I need to complete before coverage and reimbursement begin?
Eligibility, the size of the monthly allowance, and the enrollment path all depend on your specific situation. The right starting point is a direct conversation with OPERS about your individual record.
What Expenses the OPERS HRA Can Reimburse
The OPERS HRA can reimburse many qualified medical expenses. OPERS states that qualified medical expenses can include monthly post-tax insurance premiums, deductibles, coinsurance, and copays incurred by eligible benefit recipients and eligible dependents.
Categories that commonly qualify include post-tax medical insurance premiums, Medicare premiums (when applicable), deductibles, copays, coinsurance, prescription costs, and certain eligible dependent expenses.
Because reimbursement rules can change and depend on individual circumstances, retirees should maintain documentation of medical expenses and confirm eligibility for specific expenses before submitting claims. When in doubt, check directly with OPERS or Via Benefits about whether a particular expense qualifies.
How the HRA Works Before Medicare
If you retire before becoming Medicare-eligible, you may be considered a Pre-Medicare benefit recipient. A Via Benefits reimbursement guide states that a Pre-Medicare benefit recipient qualifies for the OPERS HRA by opting in, while a Medicare benefit recipient qualifies by enrolling in a medical plan through Via Benefits.
Pre-Medicare retirees need to think through several practical questions before retirement:
- What medical coverage will I use between retirement and Medicare eligibility?
- How much will the premium cost, and what portion can the HRA reimburse?
- How much will OPERS deposit monthly?
- What is the claims submission process and timing?
- How will my coverage transition when I become Medicare-eligible?
For Columbus-area OPERS retirees, this is especially important if you're retiring before age 65 and need to bridge the gap until Medicare. Healthcare in that bridge period can be one of the larger expenses in early retirement, and the HRA can offset a meaningful portion of it for eligible retirees.
How the HRA Works After Medicare
Medicare changes the OPERS HRA process. OPERS states that Medicare-eligible benefit recipients must enroll in both Medicare Part A and Part B as soon as they become eligible. Once enrolled, they select a Medicare Advantage plan or a Medigap plan, and a Part D prescription drug plan if needed, using the OPERS Connector.
OPERS also notes that Medicare-eligible retirees must enroll in a Medicare medical plan through Via Benefits to maintain HRA eligibility and continue receiving monthly HRA deposits.
The practical checklist for Medicare-eligible OPERS retirees:
- Enroll in Medicare Part A
- Enroll in Medicare Part B
- Contact OPERS if you become Medicare-eligible before age 65 (which can happen in some circumstances)
- Work with Via Benefits and the OPERS Connector to select a Medicare medical plan
- Choose between Medicare Advantage and Medigap based on your situation
- Review Part D prescription drug coverage
- Confirm your physicians, hospitals, and prescriptions are covered under your selected plan
- Understand the process for submitting expenses for reimbursement
For OPERS retirees in Columbus, Ohio, network coverage matters. Before finalizing a Medicare Advantage plan selection, verify that the Central Ohio hospitals and specialists you'd actually use — OhioHealth, Mount Carmel, OSU Wexner Medical Center, and others — are in-network under the plan. A lower-premium plan that doesn't include your preferred doctors may not actually be the lower-cost option once out-of-network charges are factored in.
The Role of Via Benefits
Via Benefits is central to the OPERS retiree healthcare experience, particularly for Medicare-eligible retirees. OPERS states that Medicare-eligible retirees need to enroll in a Medicare medical plan through Via Benefits to continue receiving monthly HRA deposits.
Via Benefits typically helps with Medicare plan comparison, Medicare Advantage selection, Medigap selection, Part D prescription drug plan review, HRA reimbursement administration, and ongoing plan changes during enrollment periods.
Before retiring, OPERS employees should understand the required Via Benefits steps and timeline so they don't inadvertently miss a step that affects HRA reimbursement. This is one of those areas where the process is straightforward when followed correctly but creates real problems when it's not. Working through the enrollment sequence with OPERS or Via Benefits before retirement is worth the time.
Mistakes to Avoid
Several patterns come up repeatedly among OPERS retirees who run into HRA issues.
Assuming the HRA is automatic. Eligibility and enrollment steps matter. The HRA isn't a default benefit — confirming your eligibility and completing the required steps is essential before retirement.
Missing Medicare enrollment requirements. Medicare-eligible OPERS benefit recipients must enroll in Medicare Parts A and B as soon as eligible. Missing or delaying this step affects both Medicare coverage and HRA participation.
Enrolling in Medicare coverage outside the required process. Medicare-eligible retirees generally must enroll in a Medicare medical plan through Via Benefits to maintain HRA eligibility. Enrolling directly with an insurance company instead of through Via Benefits can cause HRA deposits to stop.
Choosing a plan based only on premium. A low-premium Medicare Advantage plan may not be the best choice if your physicians, hospitals, or prescription medications aren't covered. The right comparison includes total expected costs — premiums plus likely out-of-pocket — not premium alone.
Underestimating out-of-pocket costs. Even with an HRA, retirees should budget for premiums, deductibles, copays, prescription costs, and any dental or vision expenses not covered by their plan. The HRA reimburses many costs but doesn't eliminate them.
How the HRA Fits Into a Coordinated Retirement Plan
The OPERS HRA shouldn't be viewed separately from the broader retirement financial plan. It affects monthly cash flow, healthcare budgeting, Medicare decisions, tax planning, pension timing, spouse and dependent planning, and investment withdrawal strategy.
Consider how the pieces connect: if your OPERS pension covers most of your fixed expenses but healthcare costs turn out higher than expected, you may need additional withdrawals from an IRA, 457, 403(b), or brokerage account. Those additional withdrawals affect taxable income, which can affect Medicare IRMAA tier, which can in turn affect your Medicare premiums and what the HRA effectively covers. The accounts and the costs are interconnected.
The goal is to coordinate your OPERS pension, HRA reimbursements, Medicare coverage, and investment withdrawals into one income plan rather than treating each piece in isolation. For the broader OPERS pre-retirement framework, see our OPERS Retirement Checklist for 2026. For the PLOP analysis (which can affect tax brackets and IRMAA exposure), see our deep dive on whether OPERS employees should take the PLOP. For the tax side of the picture, see our forthcoming piece on how OPERS and STRS pensions are taxed in Ohio (coming soon in this series).
Frequently Asked Questions
What is the OPERS HRA? The OPERS HRA is a Health Reimbursement Arrangement funded by OPERS. It provides eligible benefit recipients with tax-free reimbursement for qualified medical expenses such as premiums, deductibles, coinsurance, and copays.
Who is eligible for the OPERS HRA? OPERS offers the HRA to benefit recipients who meet certain age and service credit requirements. Eligibility can depend on retirement group, age, service credit, Medicare status, and OPERS health care program rules. Individual eligibility is best confirmed directly with OPERS.
How do Pre-Medicare retirees qualify for the HRA? A Via Benefits reimbursement guide states that a Pre-Medicare benefit recipient qualifies for the OPERS HRA by opting in. Specific opt-in steps and timing should be confirmed with OPERS or Via Benefits.
Do Medicare-eligible OPERS retirees need to use Via Benefits? Yes. OPERS states that Medicare-eligible retirees must enroll in a Medicare medical plan through Via Benefits to maintain HRA eligibility and continue receiving monthly HRA deposits.
What expenses can the OPERS HRA reimburse? The OPERS HRA can reimburse qualified medical expenses, including post-tax insurance premiums, deductibles, coinsurance, and copays incurred by eligible benefit recipients and eligible dependents.
Does the HRA cover Medicare premiums? Medicare premiums are often among the expenses HRAs can reimburse for Medicare-eligible retirees. Specific reimbursement rules should be confirmed directly with OPERS and Via Benefits, since they can change and depend on individual circumstances.
Is the HRA the same as a bank account? No. The HRA is a reimbursement arrangement, not a bank account you directly control. You generally pay qualified expenses first and then request reimbursement from the HRA balance.
Should OPERS employees plan for healthcare before retirement? Yes. OPERS employees should review HRA eligibility, Medicare timing, Via Benefits requirements, premium estimates, out-of-pocket costs, and spouse and dependent coverage before retiring — not after.
Understand the HRA Before You Retire
The OPERS HRA can be a meaningful healthcare benefit for eligible retirees, but it requires planning. Eligibility isn't automatic, enrollment steps matter, and Medicare coordination changes the process.
Before retiring, Columbus-area OPERS employees should confirm HRA eligibility, understand whether they'll be Pre-Medicare or Medicare-eligible at retirement, know what expenses may be reimbursed, understand Via Benefits' role in the process, plan for Medicare enrollment if applicable, and build healthcare costs into their overall retirement income projection.
At Blue Advisors, we help Columbus-area OPERS members coordinate pension income, healthcare costs, Medicare decisions, tax planning, and investment withdrawals before retirement. For the full picture of how these pieces fit together, start with our comprehensive guide to OPERS and STRS retirement planning in Columbus.
Schedule a conversation: If you're an OPERS member in Columbus, Ohio thinking through HRA and healthcare planning, you can book an introductory call here: calendly.com/jimblue/blue-advisors-meeting.
By James Blue, Fee-Only Advisor | Blue Advisors
James Blue is the founder of Blue Advisors, a fee-only registered investment advisory firm based in Columbus, Ohio, serving public employees, teachers, retirees, and busy professionals across Central Ohio and nationally.
This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. The views expressed are those of the author as of the date published and are subject to change without notice. Blue Advisors is a fee-only registered investment advisory firm. Advisory services are offered only pursuant to a written advisory agreement and to clients in the State of Ohio, the Commonwealth of Pennsylvania, and other jurisdictions where Blue Advisors is properly registered or exempt from registration. Past performance is not indicative of future results. Information about OPERS, Medicare, and Via Benefits is based on publicly available statements from those organizations as of the publication date and may change. Readers should consult OPERS, Via Benefits, the Centers for Medicare and Medicaid Services, and their financial advisor, tax professional, or attorney before making financial decisions.