Health Insurance Change

[Guest flamingo]

Scenario:

Employer does not offer group health insurance. ER does offer a 125 plan for ee's to pre-tax ins. premiums. EE is still on COBRA and is pre-taxing that premium. Can the election amount be changed upon the end of COBRA coverage or if EE chooses to find a private insurance policy before that time (even if it's during the middle of the plan year)?

[Guest b2kates]

your situation is very confusing. is the employer permitting health coverage through the 125. Is the employee on COBRA with a different employer?

[Guest flamingo]

Yes, the current employer is permitting health coverage through the 125 plan. Yes, the employee is on COBRA with a different employer because the current employer does not provide health benefits.

[Guest b2kates]

Are you saying that the current employer provides health insurance as a part of the 125 plan; but does not provide it "free" to employees?

is the COBRA employee seeking reimbursement from this employer? I did not think that 125 plans could reimburse for insurance premiums that are not paid by the employer.

[Sandra Pearce]

I agree with b2kates, the only health insurance that an employer sponsored 125 plan can allow to be paid through that 125 plan is that employers sponsored group health plan. Someone paying a COBRA premium to another employer or company cannot be paying that on a pre-tax basis.