With March Madness upon us, consider answers to some of your college basketball benefits questions.
Q- My son is a senior at Duke. I just learned that he is so distraught over Duke's performance in March Madness that he has been skipping class and spending time in bed. If he loses his student status, will he have to come off of my health coverage?
A- No. Under health care reform, children may be covered under a parent's plan until age 26, without reference to student status.
Q- With 18 points and 11 assists, Kendall Marshall helped UNC to an 87-73 win against Creighton. During this stellar performance, Marshall broke his wrist and could be sidelined. If Marshall buys an over-the-counter wrist brace and plays in the Sweet Sixteen, can the cost of the brace be reimbursable from his parent's health FSA?
A- Yes. The amount paid for the brace that is not covered by insurance (or otherwise reimbursed) is eligible to be paid from the FSA. The expense is reimbursable even if purchased over the counter without a prescription, assuming it is for medical care.
Q- Instead of attending an out-of-town business conference for work, Ferris Bueller was unknowingly caught by his boss on national television attending the First Round match up between Georgetown and Cinderella hopeful Belmont. The boss calls Bueller on his cell phone and terminates his employment. Must Bueller be offered a COBRA continuation coverage election?
A- Probably yes. If Bueller is employed by an employer with 20 or more employees and had group health coverage on the day before his termination of employment, Bueller should be given the right to elect COBRA continuation coverage. COBRA does not have to be offered when termination of employment is due to gross misconduct, but skipping a conference to attend a basketball game will probably not be considered "gross misconduct." Courts have a high threshold for gross misconduct and do not seem to look favorably on employers who do not extend COBRA continuation coverage rights.
Q- With 3 seconds left on the shot clock at the Ohio State - Cincinnati game, Dion Dixon makes a bounce pass to Sean Kilpatrick. The ball flies too high and knocks Kilpatrick unconscious. He needs to return home to live with his parents for a while when he recovers. Can the cost of his trip home be reimbursable from the parents' dependent care FSA?
A- No. Expenses from a dependent care flexible spending account must be incurred in order for the parents to work or look for work.
Q- Xavier center Kenny Frease sprains his ankle in the first 5 minutes of the game. The team doctor rushes him into the locker room for a quick MRI of his foot. If the doctor reports to the press that he has a broken foot, will the doctor have violated HIPAA?
A- Probably not. The HIPAA Privacy Rules apply to health plans, health care clearinghouses and health care providers who conduct certain covered transactions electronically. If the team doctor does not engage in an electronic transaction subject to HIPAA, there will not be a HIPAA privacy violation. Frease can always authorize the disclosure to the media.