Quick Question for the Attorneys Out There

[Wingate1217]

I have a quick question for the esteem members of the bar. I was laid out near the end of July and all my benefits were cut off at the end of the month. One of the benefits was a Flexible Spending Account (FSA) and the documentation that was sent me gave me the impression that I couldn't use the benefit credit card past the end of the month but I could still send in medical bills that were incurred as long as I submitted them by the end of October.
I had roughly $1,000 taken out of my paycheck from January to the end of July but have only submitted $850 in claims. The benefit folks at my former employer told me that I could submit viable medical expense only if the service occurred between January and July.
I told them that does not make sense and posed a hypothetical situation. Let's say I had the same $1,000 taken out of my paycheck but had not been to any medical facility not occurred any expenses from Jan-July. I was waiting for my kid's to go back to school whereas I would buy them new glasses, get them check-up, vaccines, etc. With that scenario I would be out the whole $1,000. Can someone help me out and cite what the law really states? I have a buddy who was told just the opposite and is expecting to submit bills he incurred this month. Thanks in advance.......

 

[wadc45]

Not an attorney but I work in employee benefits. The short answer is you can submit claims for 90 days after termination unless you opt for COBRA. Here is a more thorough explanation I found:

"There is a deadline for submitting claims if you have a balance remaining after your plan year has ended or after your date of termination. If you have terminated employment, and still have money left in your FSA account, you have 90 days from the date of termination to submit receipts. These receipts must have a date of service on or after the first day of your current plan year and not after your date of termination. So any qualifying expenses you had during the plan year while you were still employed would be eligible for reimbursement. You cannot submit receipts with dates of services after your date of termination. If you have not yet incurred any expenses and want to access the funds in your account to avoid losing the money, you have the option to continue your FSA after your termination through COBRA."

PM me if any more questions.

 

[Wingate1217]

Not an attorney but I work in employee benefits. The short answer is you can submit claims for 90 days after termination unless you opt for COBRA. Here is a more thorough explanation I found:

"There is a deadline for submitting claims if you have a balance remaining after your plan year has ended or after your date of termination. If you have terminated employment, and still have money left in your FSA account, you have 90 days from the date of termination to submit receipts. These receipts must have a date of service on or after the first day of your current plan year and not after your date of termination. So any qualifying expenses you had during the plan year while you were still employed would be eligible for reimbursement. You cannot submit receipts with dates of services after your date of termination. If you have not yet incurred any expenses and want to access the funds in your account to avoid losing the money, you have the option to continue your FSA after your termination through COBRA."

PM me if any more questions.

Thanks.....