IRS regulations limit COBRA participation in most FSAs. The continuation coverage under the FSA need not be offered for any plan year after the plan year in which the qualifying event occurs if the FSA satisfies two conditions:
a) The employer offers another group health plan; and
b) For the plan year in which the qualifying event occurs, the maximum amount that the FSA could charge as a premium for a full plan year of COBRA continuation coverage equals or exceeds the maximum benefit available under the health FSA for that year.
This almost always occurs.
FSAs need not make COBRA continuation coverage available as of the date of the qualifying event if:
c) The maximum benefit available to the qualified beneficiary under the FSA for the remainder of the plan year is not more than the maximum amount that the plan could require as payment for the remainder of that year to maintain coverage under the FSA.
If all three (a, b, & c) are satisfied, COBRA does not have to be offered for the FSA at all.
If just a) & b) are satisfied, COBRA has to be offered for the FSA for the balance of the current plan year only.
If both the first two conditions (a & b) are not satisfied, COBRA has to be offered for the full 18, 29, or 36 month period that would normally apply, depending on the qualifying event. This will usually only be true where the employer offers the FSA only and does not offer another group health plan.
yes
Yeah, the cost simply reimbursable through your flexible spending account. I guess that that's just reality
Cobra does not cover FSA's. You will be allowed to continue with the medical plan but the FSA is lost with the job.
You can find out about the benefits of having a flexible spending account anywhere on the Internet. You can get good information on FinancialPlan. They tell you all the things about saving and budgeting.
There is no such thing as a Health Savings Account Flex Plan. You either had a Health Savings Account (HSA) or a Flexible Savings Account (FSA). If you had a HSA the money is yours to keep, whereas any money in the FSA is kept by the employer.
flexible spending account
You can only pay for medical expenses with your flexible spending account. You can pay for x-rays, prescriptions, doctors visits, hospital visits, and eye visits. Your company should have a list of all eligible expenses.
Yes but you can NOT deduct the medical expenses that are paid for from your FSA account.
The plan administrator gets it.
It depends on the employer and the size of the company.The benefits can include medical and dental insurance,life insurance,disability insurance,tuition reimbursement,flexible medical spending account,401k and paid vacation days.
No, employers are not required to offer a Flexible Spending Account (FSA) to their employees. However, offering an FSA is a benefit that some employers choose to provide to help employees set aside pre-tax dollars for certain eligible expenses like medical or dependent care.
See Publication 969. You must be able to receive the maximum amount you have elected to contribute at any time. If you have received more than you contributed the Employer can not recover it from the Employee. They are "at risk" for the full amount you "elected to contribute" at the beginning of the year.