Originally Posted by
757Driver
Any chance you could provide a link or post something that spells out what is allowed using VEBA money? I'm getting way more than I'd like to in my account but was under the false impression that it was strictly for deductibles and/or medical bills.
Thanks
Assuming a person lives to start on Medicare, the VEBA money can be used to pay the monthly premiums of medicare part B and D, or part C, as well as copays and non deductibles. In retirement, Medicare Expenses (premiums and copays) are currently about $7000/year, per person. The only part of Medicare that's premium free is part A, which is for hospital stays. Doctor visits (Part B) and Prescription Benefits (Part D) have a monthly premium.
Assuming you live to 95, you're looking at about $200,000 in medicare expenditure. Since the VEBA money is tax free going in AND coming out, it's really a great retirement asset.