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.
FSA / HRA / HSA
Question of the Week - Retirement and FSA
Q.- An employee is retiring in July. He elected a $3,300 FSA contribution. Can he be reimbursed for the full election even though the total amount will not have been deducted from
Q.- An employee is retiring in July. He elected a $3,300 FSA contribution. Can he be reimbursed for the full election even though the total amount will not have been deducted from his pay on the day he retires? Will he have to pay us the remaining amount after his retirement?
A.- He will be able to claim the entire elected amount ($3,300) for expenses incurred during the plan year before the date of his retirement. This is the case even though he will not have contributed the full $3,300 to the plan. If he has underspent his FSA, he should be given the opportunity to continue FSA coverage under COBRA. If he elects and pays the COBRA premium, he will be able to be reimbursed for expenses incurred after his retirement date.
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.