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 Flex 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, you will be notified that the account will be converted to an individual HSA. This is because HSA funds are your money. You may retain the funds in your HSA account forever—the same way you would if they were deposited into a personal savings account.
Individual accounts incur a $6.00 monthly account maintenance fee. If you have eligible expenses to exhaust the balance before the conversion date (or choose to transfer the funds to another HSA that you own), no fee will be charged.
If you take no action, the individual account will be set up automatically. You will receive new debit cards, but you will need to set up new login credentials for the new individual account at www.vitaflex.net.
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.