The inner workings of how FSAs and COBRA interact create complications that require detailed clarification. One such topic is how FSA rollovers impact COBRA premiums. If it seems confusing, don’t feel bad. It’s a confusing topic for even the most seasoned HR professional.
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Cobra premiums are payments to keep the group health insurance that they would otherwise lose after an employee qualifying event.
An Employer’s risk could potentially increase when an Employer puts itself between the insurance company/stop-loss provider and the former employee particularly in a case where a premium is not paid on a timely basis.