Q.- We offer a Health Reimbursement Account for individuals who elect our high deductible health coverage. We put money in the HRA and that money may be used to pay eligible expenses. The HRA stops upon termination of employment. If an employee has a COBRA qualifying event, do we have to allow continuation of participation in the HRA under COBRA?
A.- Yes. If an employer is subject to COBRA, it must offer qualified beneficiaries who lose HRA coverage due to a COBRA qualifying event the opportunity to continue their HRA coverage. If COBRA is elected for the HRA, the continuant will be able to access the unspent balance in the HRA.