BAS Blog

Question of the Week

Written by BAS | May 25, 2017 1:00:00 PM

Q.- Our health FSA runs 1/1-12/31 and an employee elects $2,400 for the year.  The employee terminates employment 1/31.  He has contributed $200 at that time with $0 reimbursements. He elects to continue FSA coverage under COBRA, and pays the February premium. He is reimbursed for a $2,400 medical expense in February and then stops his COBRA payments. Can we somehow make him pay us the $2,000 he was reimbursed but did not contribute?

 A.- No. The former employee is entitled to the full reimbursement of his FSA election at all times during the plan year. An account being reimbursed more than contributed is a risk that an employer takes when implementing a health FSA.