COBRA FSA
If a member had a Flexible Spending Account (FSA) prior to COBRA and contributed more than they spent at the time of termination, they have the option of continuing the account while on COBRA, but only until the end of the plan year as specified in the Ameriflex Employer Portal.
See below examples:
- If the member’s annual election is $2,000.00, they contributed $1,500.00 and have spent $1,000.00, they are eligible to elect and continue contributing to the account. This is allowed because they contributed more than they spent while actively employed.
- If the member’s annual election was $2,000.00, they contributed $500.00 and have spent $1,000.00, they are not eligible to elect as they spent more than they contributed while actively employed.
After the member elects, the account will be activated; however, the card connected to their account will remain deactivated, as they are only able to submit manual claims. The convenience of using the card is for active employees only.
How will the FSA work if elected?
- The member will continue contributing to the account by paying their monthly COBRA premium. (This is their annual election divided by 12).
- The premium amount, minus our 2% administration fee, is added to the member’s yearly contribution amount.
- The member can file claims on their Flex portal or email a claims form to claims@myameriflex.com for expenses incurred from the eligibility date to the end of the plan year or when they terminate their FSA coverage.
- For example, the plan starts 1/1/2023 and runs through 12/31/2023. The member became eligible to participate on 4/1/2023. As a result, the member can file claims for expenses incurred between 4/1/2023 - 12/31/2023 or the last day of COBRA coverage, whichever occurs first.
What is the calculation?
Annual election / 12 = monthly premium rate
COBRA HRA
The COBRA HRA becomes member-funded; the employer does not need to continue contributing to the HRA.
Please see the COBRA HRA Rate Calculation for rate calculation information.
