FSA, HRA, HIPAA and COBRA Services

The Vendor is required to provide account administration and account compliance services for the following accounts and activities related to its cafeteria plan: Flexible Spending Accounts (both healthcare and dependent care), Health Reimbursement Accounts, as well as COBRA notice, enrollment tracking, and administration.
- Plan holders are able to make pre-tax contributions to their FSA through coordination of payroll deduction as facilitated by the current vendor and coordinated by agency to its participating employers.
- In recent years, healthcare FSA contribution limits and maximum carryover amounts have been as follows:
2023: $2,850 max / $570 carryover
2024: $3,050 / $610
2025: $3,200 / $640
2026: $3,300 / $660
- For employees who waive medical and pharmacy coverage, the Commonwealth offers both a general and limited-purpose HRA upon the employee’s completed attestation of coverage elsewhere.
- The Commonwealth currently offers plan holders either an integrated or non-integrated HRA depending on the election option. For integrated HRAs, the account is pre-funded with the annual amount in its entirety on January 1st of the new plan year, or the day the HRA becomes effective.
- Provide a qualified plan holder or beneficiary who loses coverage under the Plan with a COBRA notice and enrollment form packet within the notification period required by law after receiving notification from the Plan.
- Require members to provide substantiation documentation, when vendor deems such documentation necessary to determine whether an expense is a qualified medical expense eligible for reimbursement or payment under applicable law and rules.
- Provide initial notification of COBRA rights as specified by rule and applicable law.