October Q&A: HSA, Medicare, Dependent Coverage & COBRA
- October 23, 2026
- Posted by: Gus Altuzarra
- Category: Compliance Q&A
10.1.26 | COBRA FOR SMALL EMPLOYER
Q. An employer has 25 total employees, however, 20 of those employees fall under the union plan and not the group coverage plan, so technically only 5 employees are signed up for coverage under the group plan. Should all 25 employees be counted for COBRA purposes, or only the 5 employees in the group plan, making this subject to a state continuation plan?
A. Yes, for COBRA purposes, you look at all employees of the employer. This includes union employees who may have coverage elsewhere. Based on the numbers below, the employer is subject to COBRA.
10.8.26 | HSA AND TRICARE
Q. An employee wants to enroll in their employer’s HDHP plan. They also have TRICARE coverage. Would they be eligible to contribute to an HSA while being enrolled in TRICARE? The employer also contributes to the HSA.
A. Unfortunately, being enrolled in TRICARE will make it impossible for the employee, or employer, to contribute to an employee’s HSA. TRICARE is considered disqualifying coverage.
10.15.26 | EXCLUDE DEPENDENTS FROM SMALL GROUP LEVEL-FUNDED PLAN
Q. A small, level-funded employer group with fewer than 50 employees will have an 80% increase in premiums at renewal. All claims have been from spouses and children of employees on the plan. The employer wants to exclude spouses and children from the plan. Can they do that?
A. Yes, an employer can offer an employee-only plan, and exclude all spouses, children, and dependents. However, if the plan covers any dependents, it must cover all children under the age of 26.
10.22.26 | MEDICARE AND HSA
Q. An employee is on her husband’s medical plan with a different employer. Her husband’s plan is HSA-eligible and he has contributed to it for a long time. He will turn 65 in November and will enroll in Medicare effective October 1. He will keep his employer’s major medical plan only as coverage for his spouse. Will the spouse be able to contribute to the HSA associated with her husband’s medical plan once he moves to Medicare?
A. The employee will not be eligible to contribute to his HSA once he goes on Medicare. In fact, no one can contribute to the employee’s HSA once the employee enrolls in Medicare. However, the spouse is eligible to contribute to her own HSA since she is only covered by the employee’s HDHP.
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.
