Ask Us a Question Home Page | Glossary | Favorites | Ask Us a Question Ask Us A Question Home Page | Glossary | Favorites | Ask Us a Question
Search COBRA Insurance QuestionsBrowse by Category
User Opinions (61 votes)
81% thumbs up 18% thumbs down

How would you rate this answer?
Not helpful

Q:  We have several employers who offer an HSA with their Health Plans. If an employee elects COBRA, does the employer need to continue to apply the HSA monies if the employee stays on the HSA plan? If an employee is divorced and the spouse is offered COBRA, the spouse takes the health plan associated with an HSA; does the employer have to supply an HSA for the spouse? How do you determine the administrative cost of administering a COBRA HSA Plan?

A:  First, lets define an HSA.  A Health Savings Account. (HSA)  is available to employees when their group health plan as a high deductible. The employer and the employee can both contribute money to this account.  The employee is able to deduct contributions from their taxes or contribute pre-tax dollars from their paycheck. This money can be used out of pocket health care expenses that the group health insurance does not cover. 

When the employee and dependents become eligible for COBRA, they can take this account with them.  The employee can still contribute monies to the HSA and keep it for as long as they want.  The employer is no longer obligated to contribute money or responsible for administrating the HSA when the employer or dependents are eligible for COBRA.    

Official COBRA Insurance Website

Related Questions
No related questions were found.
No attachments were found.