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 - Second Qualifying Event for Child
Q.- Our former employee and her child were offered COBRA coverage. The employee declined coverage but the child elected and became a qualified beneficiary. The child had 18 months
Find out how BAS’ COBRA services can help you.
Q.- Our former employee and her child were offered COBRA coverage. The employee declined coverage but the child elected and became a qualified beneficiary. The child had 18 months of coverage from the date of the employee’s termination. Does the child experience a second qualifying event when he reaches age 26 and does he have to be given an additional 18 months of COBRA coverage?
A.- The child will have a second qualifying event upon his 26th birthday, even though the former employee did not elect continuation coverage and the child would not lose COBRA coverage. The child will be entitled to 36 months of coverage from the date of the original qualifying event.
This is because for the second qualifying event rule, you look to whether the event would cause a loss of coverage under the plan if the first event didn’t occur and if the qualified beneficiary were still covered by the plan due to the employee’s current employment. In that case, the child would lose coverage at age 26 so it is considered a second qualifying event.
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.