Q.- We have a health FSA with a carryover feature. An employee did not elect to participate in the FSA for 2019, but had a carryover from 2018. He terminated employment. Do we have to allow him to continue coverage under COBRA because he had a carryover?
A.- Your plan may be structured to require participation in the health FSA in the next year in order to carryover any unused amounts from the prior year. If your plan is structured that way, there will be no FSA for which COBRA would have to be offered and you do not need to send a COBRA notice.