I accidentally enrolled in a Dependent Care FSA through my employer's benefit website, and they refuse to unenroll me despite requests from the insurance company on my behalf. I have NO ELIGIBLE DEPENDENTS and do not qualify for this plan. Therefore, this mistake is costing me approximately $238.00 per week that I can never spend and never get back. Do I have any legal options to get out of this? Shouldn't employers have a process in place to account for, and help to correct, honest mistakes like this? Additionally, they laid off the HR person at my location during my open enrollment period as a new hire, so I had no assistance when attempting to enroll. The website was very cumbersome and difficult to navigate, and the employer had to reset my password several times. (I still use the temporary password to access the site because it won't let me change it.) I hope someone can help me.
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Accidental Enrollment in Dependent Care FSA
- Thread starter stope265
- Start date
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quincy
Senior Member
What is the name of your state, stope265?
quincy
Senior Member
It can be confusing.
We have forum members who know a lot about employee benefits (I am not one of them). Someone will be by before too long to address your questions.
Thanks for the reply, and I sincerely hope that you are correct. My monthly income has been cut in half by this, and now my emergency fund is gone, so I won't be able to pay all of my bills next month. I'm trying to get another job, but I've only had one interview, and hiring processes are long. This has been a nightmar. 😔
cbg
I'm a Northern Girl
But I am.
Unfortunately, there is nothing I can tell you that will guarantee the result you want. Your employers are on firm legal ground in refusing. FSA's are very heavily regulated by Federal law and changes are only permitted in very limited circumstances. However, I may be able to help you maximize your chances. To that end, I have several questions and each of them has a real purpose; none of them are for the purpose of putting you down or making you go on the defensive. Please don't take them that way - these are the same questions I would ask one of my own employees if they came to me with this request.
1.) When did you enroll in the Dependent FSA (month).
2.) Was it Open Enrollment, a new hire situation or another qualifying event?
3.) What is your plan year?
4.) How did you come to make this mistake? Did you check the wrong box, or did you misunderstand the purpose of a Dependent Care FSA?
5.) When did you first notice the mistake?
6.) What was the total amount you pledged?
The answers to these questions will help me determine your best line of defense. Or offense, if you look at it another way.
1) Aug. 10th
2) It was a new hire situation, and my hire date was July 11th.
3) I can't find anything on the website that tells me the plan year, but l guess Jan. - Dec. since the next open enrollment is Nov.
4) I think I accidentally clicked the wrong box, or that the site may have defaulted to select that benefit. My youngest is almost 17 and I understand exactly what this account is for, which is why I would never intentionally select this. The web page is one of those that bounces. For example, I put my mouse over one button to click on, and the page would move so that you would miss clicking the button that you were on.
5) First noticed the mistake on the first paycheck after I enrolled, Aug. 19th., so 7 business days later.
6) I'm guessing that it defaulted to the maximum amount of $5000 since that is what show on the page. It's a very convoluted website and not intuitive at all. I can't even find the plan documents for each benefit.
I sincerely appreciate your input.
2) It was a new hire situation, and my hire date was July 11th.
3) I can't find anything on the website that tells me the plan year, but l guess Jan. - Dec. since the next open enrollment is Nov.
4) I think I accidentally clicked the wrong box, or that the site may have defaulted to select that benefit. My youngest is almost 17 and I understand exactly what this account is for, which is why I would never intentionally select this. The web page is one of those that bounces. For example, I put my mouse over one button to click on, and the page would move so that you would miss clicking the button that you were on.
5) First noticed the mistake on the first paycheck after I enrolled, Aug. 19th., so 7 business days later.
6) I'm guessing that it defaulted to the maximum amount of $5000 since that is what show on the page. It's a very convoluted website and not intuitive at all. I can't even find the plan documents for each benefit.
I sincerely appreciate your input.
Interestingly enough, the benefits guide says that benefits are effective on the 91st day of employment for non-exempt employees; and on the date of hire for exempt employees. I'm paid hourly and get overtime, so I would think that I'm non-exempt, but they didn't wait until the 91st day to start this. I can't find anywhere that tells me if I'm exempt or not, and the HR people are in WI and have been no help with any of my questions.
LdiJ
Senior Member
I hope that your employer is an honorable one, because a dependent care FSA is a use it or lose it kind of account. So basically, they will just get back 5k of your salary instead of having to actually pay it to you...and that is quite sleazy.
LdiJ
Unfortunately, I have learned that they are not. The director talked to me like I was some sort of criminal when I asked for help and told them that it was a mistake. It was awful. That's why this is such a horrific experience because they are virtually stealing my money! First, they told me that it was illegal to change it, then I found out that wasn't true. The insurance company even called them on my behalf and they still refused to correct the error.
Unfortunately, I have learned that they are not. The director talked to me like I was some sort of criminal when I asked for help and told them that it was a mistake. It was awful. That's why this is such a horrific experience because they are virtually stealing my money! First, they told me that it was illegal to change it, then I found out that wasn't true. The insurance company even called them on my behalf and they still refused to correct the error.
cbg
I'm a Northern Girl
Well, it is and it isn't. IRS regulations positively prohibit making changes to an FSA once the election has been made unless there is what's called a qualifying event. However, even the IRS allows for the correction of *some* errors. We would allow you to make the correction and I would have hoped that they would have also but quite honestly I can't fault them LEGALLY for not doing so. I have to believe that you checked the wrong box; I absolutely cannot believe that they would default an enrollment in an FSA where there is such a limited eligible population.
Unfortunately, the documentation I need to refer to is at work and I'm working offsite tomorrow. The best I can offer is Monday. Please, please remind me either by PM or by bumping this thread if you don't see a response from me - I think I have a very viable argument for you to provide but I won't have access to the language you'll want to use till then.
Unfortunately, the documentation I need to refer to is at work and I'm working offsite tomorrow. The best I can offer is Monday. Please, please remind me either by PM or by bumping this thread if you don't see a response from me - I think I have a very viable argument for you to provide but I won't have access to the language you'll want to use till then.
cbg
I *cannot* thank you enough for your insights, and I will ping here again on Monday. This is my first time using this forum, and I don't know how to PM on this.
When I got home, I did go to the website and found the place for a life event change. I selected "Child No Longer Eligible" (since they are no eligible for the Dependent Care FSA benefits) and it allowed me to go through the enrollment process again, and once again, it was awful. After each selection, it would open a new tab taking me to a prescription page, and it opens three separate webpages. Everything is pending approval from the Benefits Administrator (no idea who it is at my company). Anyway, there was also an FSA Healthcare account that appeared on the summary that wasn't listed as a selection on the enrollment either time that I went through it. That was for $2000 and NOWHERE did I select that, and it's costing me $95 per week, nor is there an option to edit it. Everything shows effective 7/11/2016 - 12/31/2016. I really, really hope that I can get this fixed! Safe travels working off site!
I *cannot* thank you enough for your insights, and I will ping here again on Monday. This is my first time using this forum, and I don't know how to PM on this.
When I got home, I did go to the website and found the place for a life event change. I selected "Child No Longer Eligible" (since they are no eligible for the Dependent Care FSA benefits) and it allowed me to go through the enrollment process again, and once again, it was awful. After each selection, it would open a new tab taking me to a prescription page, and it opens three separate webpages. Everything is pending approval from the Benefits Administrator (no idea who it is at my company). Anyway, there was also an FSA Healthcare account that appeared on the summary that wasn't listed as a selection on the enrollment either time that I went through it. That was for $2000 and NOWHERE did I select that, and it's costing me $95 per week, nor is there an option to edit it. Everything shows effective 7/11/2016 - 12/31/2016. I really, really hope that I can get this fixed! Safe travels working off site!
cbg
I'm a Northern Girl
Okay, clarification here.
There are two different types of FSA's. There are Health FSA's and there are Dependent Care FSA's. Both are heavily regulated.
A health FSA is for medical expenses that are not covered by insurance. You can use it for doctor's office visit co-pays, deductibles, eyeglasses, dental expenses, co-insurances, and many other things. They can be used for you and for your spouse and for your dependent children at least till 18. Possibly over that - you'll have to check your specific plan.
A dependent care FSA is used for child or elder care expenses. The reason I asked above if you misunderstood what a dependent care FSA was for, is that despite the fact that we write it in the literature and have little pop up boxes during the enrollment process with the definitions, we have so many employees who mistakenly choose dependent care FSA's thinking it is for the health expenses of dependents, that we send out e-mails to employees who elect it for the first time asking if they meant to do that and telling them what to do if they did not.
Both types of FSA are heavily regulated and cannot be changed at random mid-year. The maximum amount, by law, for a dependent care FSA is $5000 per household; the maximum amount, by law, for a health FSA is $2550 per person. (If both spouses have access to a health FSA, they can each elect one for $2550 - the same employee cannot elect $2550 per family member.)
I hope you didn't just accidentally elect a health FSA as well since the language I'm going to give you on Monday will not help you with a health FSA, only a dependent care. On the other hand, you have a better chance of being able to utilize the health FSA.
One thing, though, if your Open Enrollment period is in November for a January - December plan year, at least it will be a short lived problem. By law, FSA's have to be re-elected every calendar year. As long as you don't make an active election of either FSA during your OE period, it will all be over as of January 1.
There are two different types of FSA's. There are Health FSA's and there are Dependent Care FSA's. Both are heavily regulated.
A health FSA is for medical expenses that are not covered by insurance. You can use it for doctor's office visit co-pays, deductibles, eyeglasses, dental expenses, co-insurances, and many other things. They can be used for you and for your spouse and for your dependent children at least till 18. Possibly over that - you'll have to check your specific plan.
A dependent care FSA is used for child or elder care expenses. The reason I asked above if you misunderstood what a dependent care FSA was for, is that despite the fact that we write it in the literature and have little pop up boxes during the enrollment process with the definitions, we have so many employees who mistakenly choose dependent care FSA's thinking it is for the health expenses of dependents, that we send out e-mails to employees who elect it for the first time asking if they meant to do that and telling them what to do if they did not.
Both types of FSA are heavily regulated and cannot be changed at random mid-year. The maximum amount, by law, for a dependent care FSA is $5000 per household; the maximum amount, by law, for a health FSA is $2550 per person. (If both spouses have access to a health FSA, they can each elect one for $2550 - the same employee cannot elect $2550 per family member.)
I hope you didn't just accidentally elect a health FSA as well since the language I'm going to give you on Monday will not help you with a health FSA, only a dependent care. On the other hand, you have a better chance of being able to utilize the health FSA.
One thing, though, if your Open Enrollment period is in November for a January - December plan year, at least it will be a short lived problem. By law, FSA's have to be re-elected every calendar year. As long as you don't make an active election of either FSA during your OE period, it will all be over as of January 1.
cbg
I understood about both of them, and I did not want either of them. Selecting the Healthcare FSA didn't even appear as an option while the Dependent Care FSA did. I think this company's website defaults to sign you up for everything unless you specifically change it to waive the benefit. My kids are almost 20 and 17,and I already knew what that account was for and it certainly wasn't for me. I'm not as upset about the FSA since I can actually use that money for myself and my kids expenses as you well noted, but I did not want to enroll in that plan either. Somehow it happened automatically. (I could email you screenshots that show you what I'm referring to. The enrollment list shows Limited FSA then Dependent Care FSA, but no Healthcare FSA option. However, when the summary page comes up, the Healthcare FSA appears (along with the others) showing that I selected $2000 at $95 per week. I cannot find it anywhere else on all 3 websites that it automatically opens. I've never seen anything like this at any of my previous employers over my professional career. I just don't get it.
I understood about both of them, and I did not want either of them. Selecting the Healthcare FSA didn't even appear as an option while the Dependent Care FSA did. I think this company's website defaults to sign you up for everything unless you specifically change it to waive the benefit. My kids are almost 20 and 17,and I already knew what that account was for and it certainly wasn't for me. I'm not as upset about the FSA since I can actually use that money for myself and my kids expenses as you well noted, but I did not want to enroll in that plan either. Somehow it happened automatically. (I could email you screenshots that show you what I'm referring to. The enrollment list shows Limited FSA then Dependent Care FSA, but no Healthcare FSA option. However, when the summary page comes up, the Healthcare FSA appears (along with the others) showing that I selected $2000 at $95 per week. I cannot find it anywhere else on all 3 websites that it automatically opens. I've never seen anything like this at any of my previous employers over my professional career. I just don't get it.
cbg
Short-lived as it might be, it's not short enough to allow me to continue to cover my house payment and utilities. They are keeping too much of my salary. I'll be alright if they will take me out of the Dependent Care FSA, but if not, I don't know how I'm going to financially make it through the next 3.5 months. The holidays are going to suck. 😔
P.S. I wish you were on my company's HR team.
Short-lived as it might be, it's not short enough to allow me to continue to cover my house payment and utilities. They are keeping too much of my salary. I'll be alright if they will take me out of the Dependent Care FSA, but if not, I don't know how I'm going to financially make it through the next 3.5 months. The holidays are going to suck. 😔
P.S. I wish you were on my company's HR team.
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