Are the RHCEP reimbursements taxable?
Deductible and co-insurance reimbursements are “tax neutral” and will not affect employees’ state or federal tax base. However, the payment of the premium subsidies to employees will be subject to taxation. • What is the maximum reimbursement amount? The maximum amount of reimbursable expenses for active employees participating in the RHCEP is determined through collective bargaining agreements. All contracts currently provide up to $1,500 per employee, per fiscal year. Employees may also qualify for an additional, secondary reimbursement as described in Item 13. • What is the deadline for submitting reimbursement claims? All requests for reimbursement under the RHCEP for each fiscal year (ending June 30th) must be received by ASI no later than the following September 15th. • How are payments issued? The State Controller’s Office will mail out reimbursement checks once a month. Payment of premium subsidies is currently issued annually by the State Controller’s office at the end of each
