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Flexible Spending Account

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52vangie

Junior Member
What is the name of your state? New York

My husband was recently terminated following the sale of his company to a new owner. He was enrolled in a medical flexible spending account plan, and had paid in $450, of which we had been reimbursed only $139, as he was in process of some dental work that was to be covered by the plan. We recently submitted a claim for part of the dental expenses which were performed prior to his termination, and the claim has been denied because the claim center said it was after the date of termination and the account is closed. Besides that, we have paid in more than we have spent, knowing we would have a large dental bill in the next month. Can they legally retain our money?
 


cbg

I'm a Northern Girl
One of the risks of an FSA is that if you put in more money than you actually use, you lose it. The risk is not one-sided; if you had had more money paid out than you had put in (which is possible) at the time of the termination, the company would have to eat the shortage. It's a two way street and both sides risk losing.

Without knowing what is causing the discrepancy in the termination date I can't comment on that. But I can tell you that any money that does not get used, does not get returned to you, any more than you would have to repay the company if you had exceeded the amount you had put in.
 

52vangie

Junior Member
What about two weeks' notice?

His termination package included payment for two weeks' termination pay, which he was not required to work. Shouldn't the termination date be extended to allow flexible spending receipts for that time?
 

cbg

I'm a Northern Girl
No. The termination date is the last day he WORKED, not the last day he was paid for.
 

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