Company wants to offer HSA's to employee's already enrolled in a Health FSA

[Guest sfranklin]

I have a client who wants to offer an HSA to the employees. Some employees are enrolled in a Health FSA. Can they stop their Health FSA and join the HSA in the middle of the plan year. If so, what happens if they have had more deductions than reimbursements or more reimbursements than deductions?

Please advise

[oriecat]

According to the Change of Status website the addition of a new benefit option does not allow employees to change their FSA election. So they would need to stay in for the rest of the year and join next year.