Is a Flex Spending Account eligible for continuation under COBRA?
I’m interested in getting COBRA Insurance. How much is COBRA?
Employees, who choose to continue their health FSA under COBRA, will have to contribute 102% of their current accounts monthly contributions. Those contributions will be post-tax and then you will be able to get 100% of claims reimbursed. Any tax advantages will be lost and if there is any unused balance in a health FSA account at the term of the COBRA coverage, it will be forfeited
125 Cafeteria plan allows employees to put a portion of their earnings, pre-taxed, into a Flexible Spending Account or FSA. These monies may be used to pay for medical bills or other approved expenses. Some types of FSA’s are dependent care or for day care expenses or for health care expenses. Employers who give their employees an option to choose a 125 Cafeteria plan must offer a continuation of these plans upon a qualifying COBRA event.
Accident Only plans start at $44/mo
Short-Term Medical low as $80/mo
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