FSA election changes

[Guest achloe]

Employer has cafeteria plan with an employer paid FSA and health insurance premium. After year end, an employee (who elected health premiums but not FSA at open enrollment) submits a run-off FSA claim to TPA. TPA notifies employer. Employer responds by saying they forgot to notify TPA that in middle of year, employee becomes eligible for Medicare and no longer needs health insurance, hence elected to stop health insurance and enroll in FSA all in the name of change in status. Any thoughts?

[Guest ehs]

Your post is a little confusing, as you state that an employee submits "run-ff" claim, which would lead me to believe that the employee was enrolled in an FSA in the prior year. Then your post indicates that due to a qualifying event, the employee enrolled in an FSA. If the ee was not enrolled in the FSA prior to be enrolled in Medicare, I don't think that is a qualifying event that would permit the employee to enroll in an FSA mid-year. I am mis-reading your post?