Entertainment Industry Flex Plan problem

[sonork64]

What is the name of your state (only U.S. law)? Los Angeles, CA

I would like to be informed of my legal standing as it applies to me recovering the remaining balance of funds in my Entertainment Industry Flex Plan account. The flex plan made a payment to Health Net on my behalf without knowing that the policy with Health Net had been canceled by Health Net. I also was unaware that my policy with Health Net had been canceled and that I had no health insurance for 3 months. I requested that the final premium that was paid to Health Net be refunded to me in the form of a check. I notified the flex plan to no longer make payments to Health Net which they agreed to. The flex plan notified me that when I receive my refund from Health Net that I need to forward it to flex plan so it can be put back in my account. It has been 45 days and I still have not received my refund check and as a result, have not sent it to the flex plan. In response to this, flex plan is denying all of my current valid claims, stating that they will not pay any claims until they receive the refund which they mistakenly sent to Health Net. At this point I no longer want to do business with flex plan and I want to withdraw my funds from my account and close the account. Flex plan is denying my request to withdraw and has informed me that the only way to access the funds is through valid medical reimbursement claim forms or if I die the funds will be given to my beneficiary. I need to know what if anything I can do to withdraw these funds. I understand that these are pre-tax contributions, however, I am willing to pay the taxes due in order to be o.k with the IRS. I do not want to deal with this unprofessional, belligerent and incompetent company any more and I feel I should be able to opt out and take my money elsewhere. Thanks for taking time to read this. - Jason

[momm2500]

rules pertaining to flex plans are governed by the IRS, this sounds more like an HSA plan?!

[sonork64]

So are you saying that I'm posting in the wrong section? What should I do? It seems to me that if I am not happy with the performance of a company that I'm doing business with, I should be able to walk away with my money and do business with another entity.

[ecmst12]

Flex plan is following the rules which are set down by FEDERAL LAW. They have no choice but to do as they are doing. The only way I can imagine you'd be allowed to withdraw the funds would be to roll them over into another similar plan with a different administrator - and that's only a distant possibility. You can't just pay taxes on the money and get it back - flexible spending accounts are "use it or lose it". Once the money is in there, the only way to get it out is with qualifying healthcare expenditures. Again, that's not the company, that's the law. Once you follow up with Health Net to get your money back and put it back in the account, all will be fine. Your problem is clearly with health net anyway.