Overview
Claims for pre-tax accounts are only eligible through your last day of employment. This is true regardless of whether other benefits may continue through the end of the month in which you terminate. Once your account termination is reported to Vita by your employer, your debit card will be deactivated.
Claims Submission after Termination
Certain account types allow for submission for reimbursement after account termination. In these cases, claims can be submitted according to the rules in your Summary Plan Description Document.
Conversion of HSA Accounts after Termination
Approximately 3-4 weeks after your employer sponsored HSA account is terminated, a notice will be mailed to you containing the options for the remaining funds in your account. Unlike other pre-tax accounts, the HSA funds are owned by you, the same as any other personal savings account. If you have funds remaining, your options are as follows:
1. Open a personal HSA account with another HSA custodian and transfer funds to that account: If you wish to pursue this option, in order to transfer your funds, please obtain a direct transfer request form from the other HSA custodian, complete it with the necessary information, and return it to help@vitamail.com for processing. Requests will be processed within 7-10 business days of receipt of complete information.
2. Maintain your HSA account with Vita, at which point your account will be transferred to a personal HSA and untied from your former employer: This option will result in a monthly $6.00 administrative cost debited from your HSA account. If you wish to pursue this option, no action is required.
If you take no action by the deadline indicated on the mailed notice, we will default to option 2 above. Once processed, you will receive new debit cards to access your funds. You will need to set up new login credentials for your individual account by contacting Vita Concierge at 650-966-1492 or help@vitamail.com.
Continuation through COBRA
If you are offered COBRA as part of your benefits package after termination, this may include the ability to continue your pre-tax accounts. Health FSAs, Limited Purpose FSAs, and HRAs are eligible for continuation under the federal COBRA law. You have the option to continue these accounts per the rules outlined in your Summary Plan Description document. This document can be accessed through the Vita Flex Consumer Portal at www.vitaflex.net.
Continuing your coverage under COBRA is most advantageous when a Health FSA account is not overspent. (This means that you have contributed more to your account than you have incurred or been reimbursed under the plan to date.) If you choose to continue any pre-tax plans under COBRA, you will need to pay the calculated premium cost under COBRA. To confirm the premium, you must contact the Vita Concierge, as individual premium amounts must be calculated for each person wanting to continue a pre-tax Health FSA under COBRA.