Your benefits wrap-up

How to maintain health insurance coverage

If you complete an application through the Healthcare Marketplace, you’ll get information about whether you qualify for Medicaid or Medicare, based on your age and/or disability status.

1. Explore your options under COBRA

COBRA stands for Consolidated Omnibus Budget Reconciliation Act, and the good news is that you’ll never be asked to remember that acronym. In most cases, under COBRA, you’ll have to start paying the full premium for your plan, including any portions your employer may have covered for you in the past, plus an administrative fee. As a result, COBRA often makes it more expensive to maintain the same level of coverage. However, if you choose to buy health insurance through COBRA, you’re not obligated to pick the same plan(s) or even elect into all the plans you selected during your last election period. All of this could impact your monthly premiums. But money isn’t the only factor here: you should also consider whether you have ongoing healthcare needs that would be increasingly complicated by changing networks, coverage, or providers right now. For more information about COBRA and its nuances, you can always consult the Department of Labor’s FAQ pages.

2. Buy a plan on the Healthcare Marketplace

Whether or not you currently have health insurance through an employer, you should know that the Healthcare Marketplace has an annual Open Enrollment period from November 1 through January 15 every year , when anyone can apply for coverage. But if you recently lost or will soon lose your employer-sponsored health insurance, you may qualify for a Special Enrollment Period , which will allow you to submit an application and start your coverage outside the typical Open Enrollment cycle. It’s also important to know that folks and families with certain incomes may qualify for Medicaid and the Children’s Health Insurance Program (CHIP). There is no deadline to apply for these programs and you can apply any time through the Marketplace.

3. Get health insurance through another employer

Of course, you can get coverage through a new employer if you’re hired into a role that includes health insurance as part of the benefits package. But that’s not the only path. If you’re eligible to join a family member’s plan, ask them to reach out to their employer’s HR team to apply for a Special Enrollment Period. They’ll be able to help you navigate the next steps from there! Read more Read less

How to handle your HSA and FSA accounts

If you have a Health Savings Account (HSA) or a Flexible Spending Account (FSA), you may be wondering what happens to that money after you move off of your current health insurance plan or leave your employer.

Your HSA funds are yours to keep

The good news about HSA accounts is that the money you deposit into your HSA is yours to keep, even if you change jobs, change health insurance plans, or retire. And if you’re able, many experts recommend investing the money in your HSA and growing your balance over time, that way you can eventually spend it on healthcare expenses down the line. However, if you hold onto an HSA after leaving a job and your balance sits below a certain threshold, you may be charged maintenance fees, which can eat into your balance. So, if you have the opportunity to open an HSA account through a new provider, it’s a good idea to explore whether you’d like to roll the funds from your old HSA account into the new one. By consolidating funds, you may limit the account fees you’ll pay over time. Of course, you can also choose to spend down your balance on eligible expenses and close out your account when you move on. It’s up to you!

You’ll need to make a plan for your FSA balance

FSAs are known as “use it or lose it” accounts, which means your funds must be spent before the end of the plan year. But there is some nuance to this, and FSA plans typically include one of two features:

1. A rollover limit a.k.a. carryover . If your plan has a rollover rule, you may have the option to carry over up to a certain dollar amount every plan year. For example, for plans starting in 2023, you could bring up to $610 into 2024, and it wouldn’t count toward your FSA contribution for the new year.
2. A grace period . The other way you can keep leftover funds in an FSA account at the end of your plan year is time-bound: the FSA grace period is typically limited to 2.5 months into the next plan year. So, if your FSA plan ends on December 31, 2023, you could continue to spend last year’s funds until March 15, 2024. After that, any leftover funds from the past plan year would be forfeited to the employer that sponsored the plan.

Handling other types of tax-advantaged accounts

In addition to a traditional HSA or FSA, you may have one or more other tax-advantaged savings accounts as part of your benefits package:

• A Dependent Care Flexible Spending Account (DCFSA)
• A Limited Purpose Flexible Spending Account (LPFSA), which typically covers dental and vision expenses
• A Healthcare Reimbursement Account (HRA) that your former employer owns and contributed to in addition to the health care coverage they provided
• A Commuter Benefit or Commuter Parking Benefit Account

For these types of tax-advantaged accounts, what happens next depends on what type of account you have and its terms. Because there is so much variety available in this realm, it’s best to reach out to your account provider directly with any questions. Read more Read less

How to manage your retirement accounts

Whether you have a 401(k), 403(b), IRA, or a different account type, you get to keep the money you deposited into them along with any vested funds your employer contributed. What will most likely change when you move on from an employer is that you may start paying more in fees to maintain your retirement accounts, and that can take a chunk out of your savings over time. Not sure where to start? Go to the complete rollover guide on IRS.gov to learn about your options. Then, reach out to your retirement account providers to get the information and forms you’ll need to initiate any transfers. Good news: There’s no rush . You don’t have to make any decisions about how to handle your retirement accounts right away. These accounts are yours to keep for as long as you want. For now, just double-check that the contact information associated with your retirement accounts is connected to your personal email address and phone number for easy access in the future. Read more Read less

A word about life insurance

If you had life insurance through a group plan through your employer, it will likely automatically lapse within a month of your departure from your role. The benefit of these options is that you may be able to access broader coverage without undergoing a medical examination, depending on your health and the terms of the plans available to you. The downside of porting or converting a policy is that you’ll likely pay higher monthly premiums than you did on your old group plan, so be sure to price out your options and consider whether another life insurance product on the market might meet your needs. When it comes to whether a life insurance policy is worth porting, converting, or purchasing, work with a qualified personal financial advisor to explore your options. Only you can decide if a plan is the right choice for you. Read more Read less