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 If
you are participating in an HRA, and quit or lose eligibility,
you will be entitled to COBRA on the same terms as for your
group health plan.
If your
employer offers a "spend-down" option, you may elect
to participate in that rather than in COBRA. You cannot participate
in both.
What
is a Spend-Down option?
The employer may set up a Spend-Down Option for certain events
resulting in a loss of eligibility. If so, the employer will
allow you to transfer all or a portion of your accumulated
HRA balance into spend-down funds. These funds can be used
for eligible expenses for a period of time after your loss
of eligibility.
If you
elect continuation coverage through COBRA, you will be ineligible
to participate in the Spend-Down option.
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Can
I cash out and take the HRA funds as additional income?
No. Currently with the HRA regulations, there is not an option
for taking the HRA funds as a cash option. HRA funds are only
available to reimburse eligible medical expenses incurred
by the employee or their dependents.
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Can I take my HRA
balance with me when I leave for another job?
Not at this time, but further regulations in the future may
allow this. The Spend-Down option can allow you to use the
remaining funds or you can continue your HRA through COBRA
for a period of time.
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What if I retire?
If your HRA is structured in such a way that carry-over funds
have accumulated to be used at retirement, you will be able
to draw on these funds to pay for eligible expenses after
you retire.
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What
happens if I quit or lose eligibility?
