Can insurance through a professional group be reimbursed as Private Individual Health premiums?

[Guest Jeremy_Davis]

I work for TPA and I got a call from a participant who is in open enrollment now, and of course has to turn his paprework in by today

He is a member of a professional organization of CPA's that offers a health insurance. My understanding is that to qualify for reimbursement under an FSA a health insurance plan must be truly an individula policy and not part of a group plan. When I explained this to the participant he told me that it is an individual policy that he pays for himself but put together or through this organization.

I do not want to tell him not to elect if he can in fact be reimbursed for these expenses.

Thanks!

Jeremy

[QDROphile]

Premiums for health insurance are not eligible expenses of an FSA.

[SLuskin]

Let's assume that the plan document has a provision for the reimbursement of private individual health insurance premiums through a reimbursement account separate from the one which reimburses medical expenses. The new regs effective August 6, 2007 permit this.

The question seems to be, is this a group premium, or just a list bill premium? Most likely it is a list bill premium or an association plan, where individuals each purchase their own policies, but get group-like rates because they belong to a certain group, like the CPA' s or AARP.

If this were the case, I would permit it.

[Don Levit]

Jeremy:

What state is your client located in?

Don Levit