Your Health:

Medical Expense Reimbursement

Introduction

Marathon Petroleum provides opportunities that can help you with your health care costs. The Health Care Flexible Spending Account (HCFSA) and Health Savings Account (HSA) allow you to pay for eligible out-of-pocket health care expenses with pre-tax dollars. The Marathon Petroleum Health Reimbursement Account (MPHRA) is a Company-funded account that is closed to new contributions.

Health Care Flexible Spending Account (HCFSA)

To participate in the HCFSA, you must actively enroll each year and select an annual contribution amount (between $120 and $2,550) to be deducted from your pay on a pre-tax basis in equal amounts each pay period. This account is available if you are enrolled in the Classic option of the Health Plan or if you have waived coverage in the Marathon Petroleum Health Plan. It’s important that you select your contribution amount carefully because IRS regulations require that you forfeit any HCFSA funds that aren’t used to reimburse eligible expenses by the filing deadline.

Marathon Petroleum Health Reimbursement Account (MPHRA)

If you are a Marathon Petroleum Health Reimbursement Account (MPHRA) participant, and you have an available balance as of January 1, 2016, your account has been converted to a Limited-Purpose Health Reimbursement Account. As an active employee, the balance can be used to reimburse yourself for out-of-pocket dental and vision expenses only (no medical). In addition to dental and vision expenses, when you retire, you will be able to use the MPHRA funds for the Retiree Health Plan, Pre-65 Retiree Dental Plan and Pre-65 Retiree Vision Plan premiums. The administrator for this account is PayFlex.

Health Savings Account (HSA)

The Health Savings Account, administered by Fidelity, is a triple-tax advantaged account that you can use to pay for qualified health-related expenses, including copays, coinsurance and deductibles for medical, prescription drug, dental and vision expenses. You are eligible to open an HSA only if you enroll in the Saver HSA option of the Health Plan.

If you open an HSA, Marathon Petroleum contributes $350 for Employee Only coverage or $700 for Employee + Dependents coverage to your HSA. You can also contribute to your HSA with pre-tax contributions, up to the IRS limits.

For 2017, the IRS limits are:

  • $3,400 for Employee Only coverage ($350 MPC contribution + $3,050 employee contribution)
  • $6,750 for Employee + Dependents coverage ($700 MPC contribution + $6,050 employee contribution)
  • Plus an additional $1,000 in catch-up contributions if you are 55 or over.

For 2018, the IRS limits are:

  • $3,450 for Employee Only coverage ($350 MPC contribution + $3,100 employee contribution)
  • $6,900 for Employee + Dependents coverage ($700 MPC contribution + $6,200 employee contribution)
  • Plus an additional $1,000 in catch-up contributions if you are 55 or over.

You manage this account. You can choose to save and invest the money with tax-free earnings or use it to pay eligible expenses during the year, up to your current balance. If you had an HSA with a previous health plan, you can transfer it to your Fidelity HSA.

Your HSA has a triple-tax advantage because:

  • The contributions you make are pre-tax.
  • Any investment earnings are tax-free.
  • Payments from the account for qualified health care expenses are tax-free. HSA funds roll over from year to year and belong to you so you will always have access to these funds. You do not need to submit receipts for reimbursement. However, it’s recommended you save receipts and records in case the IRS requests proof that these funds were used for qualified health care expenses.

HCFSA, MPHRA and HSA – A Comparison

Comparing the HCFSA, MPHRA and HSA
  HSA HCFSA Limited-Purpose HRA
Who is eligible? Saver HSA option participants Classic option participants and those who waived coverage under the Health Plan Employees with a balance in their MPHRA on 1/1/2016
Who may contribute? MPC and Employee Employee only MPC only; however, as of 2016, MPC no longer contributes
Who is the administrator? Fidelity PayFlex PayFlex
Maximum Annual Contribution (Cap)* $3,350 (Employee Only);
$6,750 (Employee + Dependent(s))
$2,550 As of 2016, MPC no longer contributes
Can I invest the money? Yes No No
Tax Treatment Tax-Free Tax-Free Tax-Free
Medical Expenses Allowed IRC 213(d) Expenses IRC 213(d) Expenses No (Dental and Vision only
MPC Contributes to the Account Yes No As of 2016, MPC no longer contributes
Balance Carries Over Year to Year Yes No Yes
Portable (employee can take the balance with him or her if he or she leaves MPC) Yes No No**

* Maximum amounts include Company contribution.

** If you leave the Company as a retiree, you can continue to use funds for eligible expenses.

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