FSAs and HRAs Don’t Count for COBRA, Right?
Wrong! Although commonly overlooked, FSAs and HRAs are COBRA eligible benefits. To avoid incurring fines and penalties and remain in compliance, the Department of Labor states that COBRA should be offered to any benefit defined as a group health plan. By definition this includes all HRAs and FSAs. It does, however, exclude dependent daycare plans.
FSA’s are trickier to determine for COBRA offering. Although the COBRA obligation always applies, there are times when employer can limit their FSA COBRA offering.
Bottom Line: Both health FSAs and HRAs are group health plans and are subject to COBRA. Call us at (800) 865-4485 to find out more. We are ready to help you determine the ins and outs of COBRA administration including those tricky HRAs and FSAs.