ANSWER: Here are the rules about the COBRA premium (it is allowed).

http://www.irs.gov/publications/p15b/ar02.html#en_US_2012_pu...blink1000193641

COBRA premiums. The exclusion for accident and health benefits applies to amounts you pay to maintain medical coverage for a current or former employee under the Combined Omnibus Budget Reconciliation Act of 1986 (COBRA). The exclusion applies regardless of the length of employment, whether you directly pay the premiums or reimburse the former employee for premiums paid, and whether the employee's separation is permanent or temporary.

If you are a COBRA eligible participant, you have the same enrollment rights as all active employees. For example, if you were only signed up on Medical but now want to elect Dental, you are able to do so at this time.

Possibly...this really depends on what the court upholds in the divorce decree (meaning the judge may dictate that the member be eligible for COBRA) or the carrier may allow for voluntary termination during a plan year, without a qualifying event.

If neither of those options are created, then the spouse would not be able to continue the benefit through COBRA.

...the spouse or dependent can elect the FSA to be continued through COBRA.

When the COBRA FSA election is made, a second FSA account is created for the beneficiary...the employee still has their FSA account too. Just like any other COBRA plan, the participant must be enrolled in the plan(s) as of the date of the event and also make monthly payments, plus they can terminate an election on a month-to-month basis.

A quick message about late COBRA payments...a Participant has 30 days from the 1st of the month to make their payment. If they don't pay on time, the administrator has the right to terminate the coverage to the last full month of payment.

Sometimes, since the COBRA Participant is usually on the group's bill and they are paying as billed, the Participant's premium is being paid so the Administrator could be lenient and not term, plus accept the "late" payment.

The answer is "yes." This is considered a loss of dependent status and is a qualifying event. If COBRA is elected, the paritcipant can continue coverage for up to 36 months.

Watch our Video on YouTube.

Based on COBRA law and minimum standards requirement, the COBRA participant may have the right to term their coverage mid-plan year and go onto the group plan...only if the carrier, of the group plan, allows it.

Second Qualifying Event

Certain events may entitle a qualified beneficiary who is receiving an 18-month maximum period of COBRA coverage to an 18-month extension of COBRA coverage (for a total maximum period of 36 months of COBRA coverage). These events are: the death of the covered employee; the divorce or legal separation of the covered employee and spouse; the covered employee’s becoming entitled to Medicare (Medicare entitlement of a covered employee is not a second qualifying event for a qualified beneficiary unless the Medicare entitlement would have resulted in a loss of coverage under the plan for the qualified beneficiary.); or a loss of dependent child status under the plan. The second event can be a second qualifying event only if it would have caused the qualified beneficiary to lose coverage under the plan in the absence of the first qualifying event.