Has anyone elected to continue their flexible spending account under cobra? I was eligible for the $250 chevron contribution for 2016 because I did the healthy heart program last year, so I had a total of $1500 this year (my election was $1250). But now my total is $1250, do they take the $250 back once you're out the door? I figured they probably do I just wondered and naturally, neither the hr service center or ADP have a clue.
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@4get (OP), I don't think you can use your FSA under Cobra. Your FSA account is managed under your active employee medical plan (United Healthcare, under the Chrvton Medical Plan). Once you leave Chevron, your Cobra medical is managed by ADP. It's only monetarily subsidized by Chevron for 6 months. Nonetheless, it's not managed by United Healthcare. So, just as Chevron HR advised me, you should spend your FSA balance as soon as possible. Use it or lose it.
OP here, not really getting an answer to my question. I'm already terminated. If I understand cobra, you can cobra the fsa's like the other elections, you can cancel anytime. If I could get the$250 back, I would probably keep it. That's why asked if there were other people that cobra''d the fsa.
I did exactly what previous poster recommended, spent the full year amount before my official last day, even though I had contributed less than half for the year. Totally legal. It was two years ago, no repercussions.
Here's the deal. There's no benefit to continuing your FSA through COBRA unless you specifically had a need for the money after you are off the payroll. Whatever you decided to set aside for the year is available to you on Jan 1 - even though you haven't made the contributions yet. Spend the money now - before you're off the payroll. The only reason you'd continue via COBRA is if you had a planned medical expense for later in the year and wanted access to your FSA later in the year. Yes it's use it or lose it (that's the tax code regulation). What they don't tell you is that you can use your annual allotment before you've paid for it and there's no repercussions if you're terminated. Just saying...
I would definitely spend whatever amount you selected for 2016 before your last day on the payroll.
Prescription glasses and dental work ...
My understanding is that Flexible Spending Accounts are not accepted under COBRA. I was told by HR before I was let go in 2015, to spend all my FSA Card balance before the end of the month I was terminated. I did that. I purchased two pairs of designer prescription glasses, a blood pressure monitor and some over the counter medications. Later in the same year (2015), I heard somewhere that I could have left my balance on the card, but had to use it all by Dec 31 or lose it. So, I suppose the message I was given was confusing. Bottom line was I spent it all in the month I was officially terminated.