Benefit Solutions, Inc.1210 Sycamore Sq. Dr, Suite 200 Midlothian, Virginia 23113
Phone Number:(804) 379-0909
Fax:(804) 379-5898
COBRA Medical Reimbursement Plans
What Happens If I Quit and I Participate in a Medical
Reimbursement Plan?
If an employer offers COBRA, the employee has two choices:
Choice One: Quit Now
The employee can submit receipts for
services through the date of termination. Then the employee has 90 days
after that date to submit receipts and get their money out of their
account. This is the only option the employee has if they have already
taken more out of their medical reimbursement account than they put in.
Choice Two: Continue through the end of
the plan year under COBRA
Employees who have a balance due them
in their account on the date they terminate may have the right to elect
COBRA coverage for the medical flexible spending account. In most cases,
they should be given the option to continue to participate in the plan
for the rest of the plan year on an after-tax basis. This will allow the
employee to submit claims through the end of the plan year. COBRA rights
do not apply to dependent day care flexible spending accounts.
This should be incorporated into the employees COBRA notification if applicable