Author Topic: COBRA with an HRA?  (Read 382 times)

nereo

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COBRA with an HRA?
« on: June 13, 2019, 02:46:29 PM »
I'm in a quandary:  in a few months I will be leaving this job for another job, disrupting my family's health care.  Currently we have a HDHP* with a $6,500 individual/$13k family deductible.  In addition my work offers a HRA, which triggers at $1,350 individual/$2,700.  At present we are very close to hitting that amount, so all future qualified health expenses this year would be reimbursed 100%.  We are expecting a few thousand$ in medical expenses towards the end of the year for some already-scheduled procedures.

It looks like our future employer will offer another HDHP, but without a HRA.  As I understand it, this means that my deductible would 'start over' and we would be unlikely to hit another $6,500 cap this year.  My other option seems to be to use COBRA to continue our existing insurance until the end of the year, allowing us to keep accruing towards the deductible.  However, what I don't know is whether
HRA would continue to apply as well.  If so, it makes sense to pay the increased family premium since we'd be recouping most of that having already met the HRA's deductible (but not the HDHP's deductible).  If I lose the HSA once I leave my job it's unlikely that we will accrue enough medical expenses to make COBRA worth it.

Can anyone clarify this for me?  HR says they aren't certain and haven't encountered this question before.  Our HSA gave me a vague answer that amounted to "it depends on the temrs of your employers contract, which we are not at liberty to discuss with you".


Glossary:
HDHP: High Deductible Health Plan
HRA: Health Reimbursement Arrangements
COBRA: Consolidated Omnibus Budget Reconciliation Act; aka continued coverage under employer's healthcare plan.

rantk81

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Re: COBRA with an HRA?
« Reply #1 on: June 13, 2019, 05:15:39 PM »
If you start at another employer that offers ACA approved health plans, you cannot stay on COBRA from your old job.

nereo

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Re: COBRA with an HRA?
« Reply #2 on: June 13, 2019, 05:54:42 PM »
If you start at another employer that offers ACA approved health plans, you cannot stay on COBRA from your old job.
Understood, but I have flexibility over whether I am offered a health care plan or not (i.e. whether I take COBRA from my previous job or not). And much of the decision depends on whether the HRA carries forward under COBRA.