RMBA Resources
Retirement Medical Benefits Account Plan
Certain State of Indiana employees qualify for Retirement Medical Benefits Account (RMBA). They include:
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Employees of executive, legislative, or judicial branch of the State government;
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State elected or appointed officers;
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Members of the General Assembly;
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An elected officer paid by the State;
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An officer paid by the State under IC 33-23-5-10, IC 33-38-5-7, or IC 33-39-6-2.
What is RMBA?
Think of it like a health reimbursement arrangement established to cover the cost of certain health insurance premiums.
Its purpose is to fund, on a pre-tax basis, the insurance premiums associated with benefits for sickness, accident, hospitalization and medical expenses for certain retired employees.
To put it simply, once you retire, it can be used to pay for health insurance premiums for you & your covered dependent(s).
If you leave state employment prior to retirement eligibility, you forfeit your RMBA funds. However, if you return to a RMBA eligible position within 30 days of your departure, your RMBA balance will be restored.
RMBA is changing
On July 1, 2026, Public Law 104 took effect. It states that the current RMBA plan will terminate as of December 31, 2026. Active employees who were hired prior to March 14, 2026 will have two (2) options to make a one-time irrevocable election during the open enrollment period in the fall of 2026:
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Transfer their current RMBA balance to the new 2027 Retiree Health Benefit Trust Fund (“2027 RMBA”); or
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Receive a one-time, non-matching contribution to their Hoosier START Deferred Compensation Plan account. Balances will vary based on age and years of participation in RMBA.
RMBA Retirees and their survivors/beneficiaries are not impacted by this change and may continue to use their RMBA until the account is depleted.
State of Indiana employees hired on or after March 14, 2026 will be enrolled in the Hoosier START Deferred Compensation Plan account.
How does Public Law 104 impact you?
Employee Type |
Open Enrollment Choice (Default): One-Time Credit from State to Hoosier START, RMBA Terminated |
Open Enrollment Choice: Continue participation in RMBA and Receive Contributions |
Not Eligible to Choose: Continue participation in RMBA and Receive Contributions |
Not Eligible to Choose: Continue Participation in RMBA, Reimbursements Frozen |
Not Eligible to Choose: Continue Participation in RMBA, Eligible for Reimbursements |
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Active employee hired before Mar. 14, 2026, eligible for RMBA (including Millie Morgan retirees, employees on short-term disability, FMLA, and military leave) |
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Active employee hired before March 14, 2026, who as of June 30, 2017, had at least 15 years of service and were eligible for full retirement benefits |
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Retired participants actively re-employed with the State |
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Retired participants eligible for RMBA reimbursements |
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Survivors and beneficiaries of retired participants eligible for RMBA reimbursements |
Note: Active employees hired before Mar. 14, 2026, who are eligible for the RMBA, who are not eligible for additional contributions, that take the default option and are on long-term disability at the time of the one-time credit to the members’ Hoosier START account (in early 2027) may be impacted differently. Please contact your HR Director during Open Enrollment for assistance if you believe that this situation may be relevant to you.
