COBRA and Health FSAs

[kocak]

Company offers a group health plan and a medical reimbursement plan (health FSA). Must a terminated employee elect COBRA coverage in the health plan to be eligible to elect COBRA coverage in the health FSA?

This is what I'm finding:

The 1987 proposed regs indicated that you had to elect core benefits (group health plan) to be able to elect coverage for noncore benefits (medical reimbursement). But the final 1999 regs eliminated that provision.

I'm thinking they could elect COBRA coverage for their health FSA without electing COBRA coverage for their group health plan. Am I on the right track or way off base? Appreciate the help.

Michele

[Mary C]

Yes you can elect to continue the FSA without the health care plan. The government considers the FSA to be a separate, stand alone medical plan subject to a separate COBRA election. In addition, active employees are usually not required to enroll in a group health care plan to enroll in the FSA plan at the same employer.