Did you know that Health Reimbursement Accounts (HRAs) are subject to COBRA?

Because HRAs are considered health plans, they are subject to COBRA. Employers may charge a premium for continuing HRA participation under COBRA, separate from the COBRA premium that is charged for an HNE plan. The premium charged for continuing the HRA plan under COBRA must be calculated based on the cost of the HRA plan, not simply by dividing the maximum benefit by 12 months.  Please consult with your COBRA Administrator to determine what the premium should be for continuing your HRA plan under COBRA.

If the HRA plan you offer is through Health Equity, you must notify HNE when your plan participants elect to continue with COBRA. This will ensure their claims continue to be sent to Health Equity through our integrated process while they are eligible for COBRA.

HNE offers direct bill COBRA services for the monthly premium cost of the HNE plan. This service is offered to employers who request direct bill COBRA. HNE is not a COBRA Administrator; employers are still required to provide their employees and beneficiaries with any required COBRA notifications.  When an employer elects direct bill COBRA, HNE will bill your COBRA participants for their HNE coverage at the cost of the HNE premium plus a 2% COBRA billing charge. Although HNE offers an integrated HRA solution through Health Equity, HNE does not include the cost of the HRA premium in its COBRA billing.

Please contact your broker or COBRA administrator for additional information about HRAs and COBRA.

If you currently offer an HRA through Health Equity, please confirm below whether or not you currently have participants who have elected COBRA for their HRA.