Medical Reimbursement Account

A Blue Priority Flex medical reimbursement account allows you to pay for eligible medical expenses on a pre-tax basis.

You estimate how much you’ll spend on qualified medical expenses in the coming year and decide on a contribution amount. When you have an eligible expense, you submit a claim form and, once approved, are reimbursed with tax-free dollars from your account.

How do I get started?
At the beginning of the plan year, your employer asks you how much money you want to contribute for the year. You have only one opportunity a year to enroll, unless you have a qualified family status change, such as marriage, birth, divorce, or loss of a spouse’s insurance coverage.

The amount you designate for the year is taken out of your paycheck in equal installments each pay period. However, the total amount you elect for your medical reimbursement account is available any time during the year, even if the funds have not yet been withheld from your pay.

How much should I contribute?
Give some thought to calculating how much money to contribute for the year. If you put in more money than you need, by law, you lose it. However, some employers offer a grace period of up to two-and-a-half months to use the money.

Use the reimbursement account worksheet (pdf) to estimate the expected out-of-pocket medical expenses for you and your dependents for the next year.

How do I get reimbursed for expenses?

• Submit a flex claim with a copy of the Explanation of Benefits or the provider's invoice and proof of payment. Once your claim is approved, you’ll be issued a reimbursement check. Sign up for direct deposit (pdf) or automatic reimbursement (pdf) to speed up the reimbursement process. With automatic reimbursement, expenses are automatically paid from your medical reimbursement account, so you don't need to file a claim.
• Pay the doctor or pharmacy with your Blue Priority Flex debit card, so the money is taken directly from your account.*

Be sure to keep your receipts in case you need to verify a claim.

What can I spend the money on?
You can take out your flex funds, tax-free, to pay for health care not covered by your health plan — everything from doctor fees to over-the-counter drugs and your health plan deductible. View a list of eligible expenses.

What are the tax advantages?

• You can withdraw money tax-free to cover qualified medical expenses.
• Your contributions will be taken from your paycheck before taxes are calculated, lowering your income tax payments.
• Any contributions your employer makes don't count as taxable income.

* Debit card feature not offered by all employers; contact your benefits administrator.

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