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 $2,650) 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.

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 $500 for Employee Only coverage or $1,000 for Employee + Dependents coverage to your HSA. You can also contribute to your HSA with pre-tax contributions, up to the IRS limits.

For 2019, the IRS limits are:

  • $3,500 for Employee Only coverage ($500 MPC contribution + $3,000 employee contribution)
  • $7,000 for Employee + Dependents coverage ($1,000 MPC contribution + $6,000 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.

Tax Savings Accounts

Tax Savings Accounts
  Health Savings Account HSA Flexible Spending Account Limited Purpose FSA
Coordinates with which Health Plan option Saver HSA Classic, or Waived Saver HSA
Marathon Petroleum’s 2019 contribution amount Employee Only: $500
Employee + Child(ren): $1,000
Employee + Spouse: $1,000
Employee + Family: $1,000
$0 $0
Before-tax contribution limits (includes Company contributions) Individual: $3,500
Family: $7,000

Individuals who will be 55 and older may contribute an additional $1,000

$2,650 $2,650
Use for Health Plan contributions Generally, only if you are age 65 or older No No
Use for medical, dental and vision expenses Yes Yes Dental & Vision Only

post-deductible medical expenses

Portable if you leave Marathon Petroleum Yes No No
When funds are available for use Works like a checking account – you must have enough money available to cover the expense Immediately Immediately
Debit card Yes Yes Yes
Potential to earn investment returns Yes No No
Rollover from year to year Yes $500 carry over $500 carry over
Enrollment without participation in Marathonsponsored health plan No Yes No

Limited Purpose Flexible Spending Account

If you are enrolled in the Saver HSA, you may establish a Limited Purpose Flexible Spending Account (LPFSA) that is limited to paying for eligible dental and vision expenses. As with the Flexible Spending Account, you can elect between $120 to $2,650 in pre-tax dollars per year for your anticipated dental and/or vision expenses. Your FSA contributions are divided evenly throughout the year and deducted from each paycheck before taxes are withheld, but your full election is available for immediate use.

The LPFSA works great with an HSA, since it helps save your HSA dollars for future expenses. Eligible expenses may include: dental and orthodontia care, such as fillings, X-rays and braces, vision care, including eyeglasses, contact lenses and LASIK surgery.

Once you meet your deductible, you can use your funds to pay for all eligible health care expenses. But first, make sure you let PayFlex know you met your deductible.

More Important Information

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.

HCFSA and MPHRA Details

Other Resources