COBRA & FSA question

[persnicketySnickerer]

hello all, here's my situation/question.

this year (open enrollment), i decide to select $2400 for my 2024 FSA.

i plan to leave my company around march 2024 and i plan to use COBRA for the rest of 2024.

finally, i plan to use all of my 2024 FSA before i leave.


normally, i understand that i will owe the company none of the FSA money back when i do leave.

however, since i plan to use COBRA, is there any clawback since i'm enrolled in the company's plan via COBRA?

thanks!!


(also, the FSA in question is an LPFSA, but i don't think that that makes a difference.)

[MP123]

normally, i understand that i will owe the company none of the FSA money back when i do leave.

however, since i plan to use COBRA, is there any clawback since i'm enrolled in the company's plan via COBRA?

I've never heard of such a thing, but you could always ask. You'll be paying for COBRA directly with the insurance company, so it doesn't really involve your former employer. You won't get the benefit of any employer subsidy on the rate though, so it may seem like a clawback.

[Jack FFR1846]

There are no clawbacks and you understand how FSAs work. I did exactly what you're talking about. Max FSA and used it before I left in June. Of course, I only put in half so got out of it with only half the cost. I went on Medicare but DW went on Cobra. I did this one other time with another employer in the past where I didn't know and called HR to see if I needed to pay anything back and they explained that no, by the plan, I could spend the amount for the year regardless of when I left the company. I'm a big medical user so tend to always hit the max FSA spend by about May and out of pocket max not much later.

[persnicketySnickerer]

awesome, thanks very much for both of your replies!

(it's always good/great to get real-world feedback wrt a situation that you think you understand.)