The Medical Expense Reimbursement Program of the HPAE Retiree Medical Trust

Retiree health benefits rank among our members' top five concerns, along with wages, staffing, pensions, and health benefits.

This is not surprising. Even if we are fortunate to have health insurance coverage when we retire, we still will face significant costs from deductibles, co-payments, and out-of-pocket costs that are not covered by our insurance.

And as we get older, our medical costs increase. Do you know that:

• The average retiree spends 22% of their income on health care costs.
• A couple that retires today will spend over $600 month on medical costs not covered by Medicare.

Many HPAE members spend 20, 25, or 30 years of their work lives taking care of patients as dedicated, skilled professionals. After all of those years, we deserve to receive to some support for our medical needs when we retire.

That is why HPAE decided to develop a medical expense reimbursement program for retirees this year and to bargain contributions to this program as part of the 2006 One Voice negotiations. This reimbursement program enables retirees to get reimbursed for various medical costs, based on the benefits that they have accrued upon retirement

With the assistance of an attorney who specializes in setting up retiree medical programs, Shana Saichek, we created the Medical Expense Reimbursement Program of the HPAE Retiree Medical Trust. The Trust is a multi-employer, non-profit trust that receives tax advantages under the IRS tax code, 501c(9).

The Trust is governed by an equal number of Union and employer Trustees. The Trustees have hire professionals to administer the reimbursement program, including a third party administrator (TPA), an attorney, an actuary, and a financial investor.

The Trust is what is known as a “VEBA” or Voluntary Employees Beneficiary Association. Because of its tax status, a VEBA allows contributions for post-retirement medical expenses to be contributed with pre-tax dollars, to accrue interest without taxation, and finally, to be received by retirees on a tax-free basis.

HPAE members in the following locals participate in the program through mandatory, pre-tax employee contribution to the Trust:

• Local 5004/Englewood Hospital and Medical Center
• Local 5030/Palisades Medical Center
• Local 5105/Virtua
• Local 5118/Cooper University Hospital
• Local 5147/Meadowlands Hospital and Medical Center
• Local 5186/Christ Hospital

This was just the first step. In January 2010, Runnells Hospital will make contributions to the trust on behalf of Local 5112 members.

If you have specific questions or concerns about the program, email your question or concern to mslott@hpae.org.

Information on the Retiree Medical Trust

Questions & Answers

HPAE Retiree Medical Trust
- Explanation of Employee-Only Contributions
To download, click here.


Retirement Fund Brochure
To download, click here.


Please visit the Benserco Inc. website for the following Retiree Medical Trust third party administration:

• Summary program description
• Participant information card
• Medical expense reimbursement form
• Privacy notice to participants