FSA / HRA / HSA
FSA Reimbursement for Non-Covered Spouse
Health FSA funds may generally be used to reimburse eligible medical expenses for a spouse or qualifying dependents even if they are not enrolled in the employer's health plan.
COBRA
Question of the Week - COBRA
Q.- One of our employees who had family coverage just found out he was not legally married. We will terminate the “wife” from coverage, but do we have to offer her COBRA? If
Q.- One of our employees who had family coverage just found out he was not legally married. We will terminate the “wife” from coverage, but do we have to offer her COBRA? If someone never should have been covered under the plan, do we still have to offer COBRA?
A.- COBRA must be offered to individuals covered under the health plan if they experience a qualifying event that results in the loss of coverage. A qualifying event includes termination or reduction of hours, divorce or legal separation, death of a covered employee, Medicare eligibility for a covered employee, or loss of dependent status. Whether someone “never should have been covered” is not considered when offering COBRA. If they have coverage and experience a qualifying event, COBRA is offered.
Voluntarily removing someone from coverage who never should have been covered is not one of the recognized qualifying events so no COBRA election has to be offered in this situation.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 integrates with major insurance carriers for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and others), and with leading payroll platforms for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
Topics
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retiring, a covered spouse may receive up to 36 months of COBRA continuation from the date of Medicare entitlement.
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retirement, the spouse may be eligible for up to 36 months of COBRA continuation coverage.