HRA Plan Termination - What happens to $ still in account

[Guest rulesrulesrules]

How do I go about terminating an HRA? What happens if there is still money in employees' accounts? Does it revert to the employer, do the employees have to be given a spend down option? Since it's a plan termination I don't think COBRA applies.

[leevena]

An HRA, or Health Reimbursement Arrangement, is an employer funded account that can be used by the employee/dependent to pay for eligible expenses. The money does not belong to the employee. So, with a cancellation, the funds belong to the employer. You are correct about cobra, it is not a required option.