What’s the number one problem facing small businesses today?
Hint… it’s been the same number one for the past 25 years.
Health Insurance remains #1
HSA qualified health insurance plans are the fastest growing segment in healthcare today because they save money on health insurance and taxes.
Here is a short video explaining the basics of HSAs as heard on “Insurance Talk with Scott & Mike” November 10, 2012.
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Scott,
If a company’s healthcare benefits plans are administered by a PEO, the employer of record for the plan, and the company terminates the agreement with the PEO prior to the end of the plan year, do the unused FSA contributions remain with the PEO or can the employee recapture the funds? Would this be considered a Qualifying Event?
Shirley,
You aren’t supposed to ask me questions I don’t know the answer to here on my blog. But luckily I have resources to answer fantastic technical questions such as yours. I went straight to the CEO (Shane Jones) of a PEO (Cobalt Astra) that we work with here in Kansas City. Here is his response:
“It looks like the $$ would remain with the PEO. Basically, all of the participating EEs from the client are experiencing a qualifying event. They would be eligible for COBRA continuation of the medical portion of the FSA…but not the dependent care portion. They would be required to continue paying their premiums in order to remain active participants in the FSA pool. It might behoove the company to alert their EEs of the impending severance from the PEO, 90 days would be nice. For those who did not wish to elect COBRA, this would give the EEs the chance to obtain maximum reimbursement from their accounts prior to the termination date. NOTE: In order to be reimbursable, all claims must be incurred prior to the EEs date of termination.”
We interviewed Mr. Jones on our radio show last year. You can hear the entire show’s podcast here:
Insurance Talk with Scott & Mike February 5, 2011
Luckily I know smart people!