Car Accident

[Guest maya24]

I have an employee who had a car accident months ago. She has been under the care of drs since then. She told me the insurance company won't reimburse her for co pays etc. They told her they take that into consideration for the settlement. Since these amounts are being considered in the lum sum settlement would that disqualify them from being reimbursed from her FSA? Thanks

[J Simmons]

I think that the co-pays do not qualify for reimbursement while there remains a palpable possibility that the EE will be reimbursed by the insurance company. If negotiations break-off with no settlement is reached, then I think that the co-pays would be eligible for FSA reimbursement--but if she eventually does recover after that, the plan's subro/recovery clause (if the plan has one) would likely kick in.