Compliance Q&A: COBRA Duration, PCORI Counting, and HSA Clarifications
- July 23, 2025
- Posted by: Gus Altuzarra
- Category: Compliance Q&A
7.3.25 | COBRA DURATION
Q. An employee and their spouse enrolled in Medicare less than 18 months prior to the employee’s termination of employment. Would they be entitled to COBRA for 36 months after becoming eligible for Medicare?
A. If the employee enrolled in Medicare prior to terminating employment, COBRA for the employee will be 18 months from the termination of employment. COBRA for the spouse will be the longer of 36 months from when the employee enrolled in Medicare, or 18 months from the termination of employment.
7.10.25 | COUNTING EMPLOYEES FOR PCORI FEE
Q. How do we count employees for the PCORI fee when plan years for our medical plans and our HRA are not the same?
A. If the HRA and medical plan are on different plan years, each plan must pay a separate PCORI fee. For purposes of determining the PCORI fee for the HRA, you only count employees (spouses and dependents are not included). This is different for the underlying medical plan, which looks at total lives covered by the plan.
7.17.25 | USING HSA FOR CHILD’S MEDICAL EXPENSES
Q. An employee and their spouse are enrolled in an HSA and the spouse has a child with an ex-wife. The employee and spouse do not claim the child as a tax dependent. Can the employee use HSA funds to pay for out-of-pocket medical/dental expenses for the child?
A. The HSA cannot be used to pay for expenses of a child that is not a tax dependent of the HSA owner.
7.24.25 | HSA CATCH-UP CONTRIBUTION
Q. If a person turns 55 this November, can they take advantage of the $1,000 HSA catch-up contribution, or do they need to wait until 2026?
A. A person just has to turn 55 by the end of the year to make an HSA catch-up contribution for the year. So a 2025 HSA catch-up contribution is possible for this person turning 55 in November.
Answers to the Question of the Week are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.
