What is the name of your state (only U.S. law)? California
I work for a school district. I've participated in their HSA/FSA (aka Cafeteria Plan or Section 125) for over five years. This district contracts with a company I'll call ABC, to handle the FSA/HSA stuff. I've had issues with ABC over the years (I have complained here about some in the past). These include late checks, checks for the incorrect amounts, denial of claims with invalid reasons, etc. This year, I contributed the max to the FSA to cover childcare, and the max to the HSA to cover LASIK surgery for my left eye next month. I just received a letter from my district explaining:
-Earlier this month, several employees attempted to cash reimbursement checks from ABC only to find there were insufficient funds in the account.
-If you receive a check from ABC, do not attempt to cash it.
-The district is withholding the November deductions from transferring to ABC until this is worked out.
-Legal remedies are being taken. You will be contacted by personnel as information becomes available.
Now, I'm not sure what to do. Do I move forward with my surgery? How will I be reimbursed? What if my district doesn't get any resolution from ABC? Am I out the money that was deducted from my paycheck thus far? Will I get any reimbursement? If I don't have my surgery, then things get resolved, I will lose the money in the HSA anyway because it's "use it or lose it". I tried to ask whether I should move forward with my surgery or not, and their response was that updates will be communicated to me. If ABC and my district don't figure things out, will I need to take my employer to court? I believe they would owe me $7,500. I have tried searching for help from other places, and it seems that nobody knows how to help out. This is not health insurance, so any CA insurance oversight agency cannot help me. The IRS might be able to investigate because this deals with a lot of tax benefits, but I don't know how to contact them and actually get a response. HELP!
I work for a school district. I've participated in their HSA/FSA (aka Cafeteria Plan or Section 125) for over five years. This district contracts with a company I'll call ABC, to handle the FSA/HSA stuff. I've had issues with ABC over the years (I have complained here about some in the past). These include late checks, checks for the incorrect amounts, denial of claims with invalid reasons, etc. This year, I contributed the max to the FSA to cover childcare, and the max to the HSA to cover LASIK surgery for my left eye next month. I just received a letter from my district explaining:
-Earlier this month, several employees attempted to cash reimbursement checks from ABC only to find there were insufficient funds in the account.
-If you receive a check from ABC, do not attempt to cash it.
-The district is withholding the November deductions from transferring to ABC until this is worked out.
-Legal remedies are being taken. You will be contacted by personnel as information becomes available.
Now, I'm not sure what to do. Do I move forward with my surgery? How will I be reimbursed? What if my district doesn't get any resolution from ABC? Am I out the money that was deducted from my paycheck thus far? Will I get any reimbursement? If I don't have my surgery, then things get resolved, I will lose the money in the HSA anyway because it's "use it or lose it". I tried to ask whether I should move forward with my surgery or not, and their response was that updates will be communicated to me. If ABC and my district don't figure things out, will I need to take my employer to court? I believe they would owe me $7,500. I have tried searching for help from other places, and it seems that nobody knows how to help out. This is not health insurance, so any CA insurance oversight agency cannot help me. The IRS might be able to investigate because this deals with a lot of tax benefits, but I don't know how to contact them and actually get a response. HELP!
