Can I pay for COBRA premium with my HSA?

Generally speaking, most insurance premiums cannot be covered by an HSA; they are not included on the eligible expense list published by the IRS. However, there are a few exceptions. According to IRS publication 969: “Insurance premiums. You can’t treat insurance...

Can I contribute to my HSA while on COBRA?

The answer depends on the type of insurance coverage you have while on COBRA. As long as you are enrolled in a qualified high deductible health plan, you can make contributions. That is one of the stipulations for opening and contributing to an HSA. When it comes to...

Does my employer offer COBRA insurance

COBRA insurance is generally required for private-sector employers (with a group health plan) that employ at least 20 individuals for more than 50 percent of its business days during the previous calendar year. COBRA also applies to group health plans sponsored by...

COBRA Penalties

IRS Code §4980B(e)(2)(B). Excise tax penalties of up to $200 per day may be assessed by the IRS for each day on which a plan fails to comply with COBRA. Excise taxes must be self-reported on IRS Form 8928.  ERISA §502(c)(1)(a). Statutory penalties of up to $110 per...