Reimbursement for Medical Premiums

[Guest Richard Scheer]

A participant has single coverage and the premiums are paid through our cafeteria plan. Participant has outside coverage for her children (cheaper than our plan) and wants to know if these premiums can be reimbursed under our Health Care FSA. I don't think so, but cannot find anything to prove me right. Can anyone point me in the right direction.

Also, I assume this would fall under the same rule as above, a new employee has COBRA coverage with a prior employer --- can these payments be reimbursed under the FSA?

Thanks for any help.

[Guest Matt J]

Insurance premiums are not eligible for reimbursement under a Health FSA plan. See Prop. Treas. Reg 1.125-2 Q/A 7(B)(4). I found that reference in the EBIA Cafeteria Plan book. Those expenses may be deducted in your taxes based on Publication 502, just not through the Health FSA plan.