FSA accounts not available at beginning of benefit year

[melodya1002]

Indiana. My company has not made our FSA accounts available as of today and they were supposed to be available on January 1st. They claim it is a delay with the provider of the benefits, but cannot provide any timeline for when we will receive our "Benny" Cards, or be able to access our funds. It is the 18th of the month, and many people at our company are running out of medicine and are unable to fill them due to FSA not being available. FSA deductions continue to be withdrawn from our paychecks.

Any legal standing that could help us gain access to our money?

 

[cbg]

Let me ask you a couple of questions -

What would you do if your provider did not have the availability to use a debit card? How would you access your money then?

What reason has your employer given for the funds not being available?

I could quite see funds not being available until January 4 (this year) but the 18th is stretching it, IMO.

 

[melodya1002]

Money would be accessed on a reimbursement only basis if we were not to use the "Benny Card". We would have to file a claim for it. As of right now, we are not even able to do that, as the company managing them doesn't even have record of our information.

The reason they are stating is that the file sent the benefits company was corrupt and they could not load our information into the system. It was brought to their attention the first of the year, as they were not even aware there was a problem. Communication has been extremely poor from our company as to there even being an issue, let along a projected resolution date. Projected resolution date was supposed to be last week, but when pressed today, HR informed us there would be a meeting on Thursday for everyone with FSA to go ahead and get all their prescriptions filled as their cards will not be available, and file for reimbursement when our accounts become available.

 

[cbg]

And you do not believe this to be true because...?

 

[melodya1002]

I'm weary due to the lack of information given prior to be consistently pressed by multiple people. It feels as though there is more information that is not being shared as to the status of our benefit. In the mean time, the money taken out of our paychecks for our FSA could have been used to purchase our medication this month, but alas, that money was removed from our paycheck and put into accounts we do not have access to.

 

[cbg]

I work in the benefits office of a major university and deal with FSA accounts on a daily basis. The fact that the money is not available right this second does not mean it will not be available. I am intimately familiar with the kind of file transfer you describe and find the information you have been given entirely believable. I'm not sure what additional information you think they are withholding from you or what difference it would make to your options. Is there some reason you can't buy the medication and apply for reimbursement after the fact? What would you do if your employer didn't offer an FSA? They're not required to do so by law, you know.

 

[DaisyPHR]

I am the Director of HR for my company and we are going through the same issue (I almost thought you were one of my employees, but we don't have any in Indiana.) Our issue is that our insurance broker did not do her job and it has been a mess trying to get it setup and allow enrolled employees to access their funds. I agree with cbg, what your company is telling you is totally believable and from what I have experienced this year, it could be the result on any number of factors (i.e., broker not following up with FSA company, FSA company not having your organization coded correctly, etc.) I've never had this many issues with benefits (more than just the FSA) and I have worked for companies 10 times the size of my current organization (i.e., I will be getting a new, competent broker soon.) I know you hate to hear this, but hang in there; I am needing my card as well so that I can get prescriptions and I'm the one fighting with the broker on all of this!