Managing Employee Benefits

in Employment Separations

(includes a checklist!)



In general, employee benefits end when workers separate from employment, regardless of the reason for the separation. Unused balances in health flexible spending accounts (FSAs), dependent care FSAs and health reimbursement arrangements (HRAs) are typically forfeited, subject to a run-out period for submitting claims. Health coverage may be continued under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) or a similar state continuation coverage law, if applicable. Other employee benefits, such as group life insurance, may be subject to conversion rights.


To help ensure all critical tasks are addressed, employers should implement a standardized offboarding process that includes essential steps regarding employee benefits.


Key Compliance Tips


  • Follow the plan documents eligibility rules
  • Offer continuation coverage
  • Inform employees about conversion rights
  • Understand the rules for FSAs and HRAs


To read the full article and download the Offboarding Checklist for Employee Benefits click HERE.


Other Links and Resources can be found below:





Supreme Court Rejects Standard for "Reverse Discrimination" Claims


On June 5, 2025, in Ames v. Ohio Department of Youth Services, the U.S. Supreme Court unanimously rejected the “background circumstances” test previously applied by several federal circuits in “reverse discrimination” cases. 


The court’s reasoning is rooted in the plain language of Title VII and its focus on individual rights. The justices noted that the law’s protections are not group-based but instead guarantee equal treatment for “any individual.” Imposing a higher evidentiary hurdle on majority-group plaintiffs, the court found, was not only unsupported by the statute but also at odds with longstanding precedent making clear that Title VII prohibits discriminatory preference for any group, minority or majority.



Improving Your Health Care Literacy


Personal health care literacy refers to your ability to find and understand health care information and services and use those to make informed decisions for yourself.


Low health literacy is quite common in the United States. The National Assessment of Adult Literacy (NAAL) reports that merely 12% of Americans have proficient health literacy skills, which means many adults have difficulty understanding drug labels, following prescription instructions or identifying credible health care resources.


The NAAL categorizes individuals into four levels of health literacy:


  • Proficient
  • Intermediate
  • Basic
  • Below Basic


Health care literacy is essential for better managing your well-being and preventing your risk of diseases. Check with HR or your manager for health care resources that may be available in your organization.

Improving Health Care Price Transparency


In February 2025, President Donald Trump issued an

executive order (EO)

directing the Departments of Labor, Health and Human Services, and the Treasury (Departments) to implement and enforce health care price transparency regulations. The Departments have started issuing new transparency guidance in response to the EO’s directives.


The Departments issued a

final rule in November 2020 that imposed new transparency requirements on group health plans and health insurance issuers. The final rule requires health plans and issuers to comply with the following price transparency disclosures:


  • Machine-readable files (MRFs)
  • Self-service price comparison tool


According to the Departments, this new format will promote transparency by eliminating meaningless or duplicative data from the files.

5 HSA Facts and Myths


Established in 2003, health savings accounts (HSAs) offer individuals a tax-friendly way to set aside money for medical expenses. They are an innovative, flexible way to save money and pay for health care expenses now and in the future. If you have a high deductible health plan (HDHP), an HSA can be a valuable companion, offering important tax advantages and long-term savings potential.


An HSA is a tax-advantaged savings account that individuals can use to pay for qualified medical expenses. These accounts are available to those enrolled in an HDHP, and many HDHPs offer the option to open and contribute to an HSA. Funds in an HSA can be used for various eligible health care expenses, such as copays, prescriptions, dental care and vision-related costs. The accounts are often used to help offset the higher deductibles and out-of-pocket costs that come with HDHPs.


If you are enrolled in an HSA or will consider enrolling in one next year, understanding common facts and myths can help you make educated decisions about plan enrollment and health care spending.



Click Here for Facts & Myths



Compliance Tracker June 2025


The RxDC report was due by June 1, 2025, covering data for 2024. The RxDC report comprises several files, including those that require specific plan-level information and those that require detailed information about medical and pharmacy benefits. RxDC reports must be submitted through an online portal maintained by the Centers for Medicare and Medicaid Services. Most employers rely on third parties, such as health insurance issuers, third-party administrators or pharmacy benefit managers, to prepare and submit RxDC files for their health plans.


Private-sector employers with 100 or more employees and federal contractors with 50 or more employees meeting certain criteria must submit workforce demographic data, including data by job category and sex and race or ethnicity, to the EEOC each year as part of the EEO-1 data collection. Employers submit their EEO-1 reports through an online filing portal. The 2024 EEO-1 data collection opened on May 20, 2025. The deadline to file the report is June 24, 2025.



Contact Us


HR Hotline

800-256-7310


Karen Shannon

Vice President Business Consulting/CHRO

417-881-8333, ext. 133

Karen.Shannon@ollisaa.com


Carolyn O'Kelley

Human Resources Consultant

417-881-8333, ext. 126

Carolyn.OKelley@ollisaa.com


Kenya Pearman

Human Resources Consultant

417-881-8333, ext. 125

Kenya.Pearman@ollisaa.com


Victoria Ramsey

Human Resources Generalist

417-881-8333, ext. 124

Victoria.Ramsey@ollisaa.com



Visit our Human Resources page at

OllisAkersArney.com

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