Flexible Spending Accounts - Total Sham
Jan 19th 2014, 3:59 am
#16
Powder Maggot
Joined: Nov 2004
Location: Nuevo Mexico
Posts: 4,452
Re: Flexible Spending Accounts - Total Sham
That's good for you guys. Perhaps your accounts are in good places.
We were offered HSAs managed by HSA Bank this year. Our plan has no minimum balance, waives some of the fees, and "allows" us to avoid the rest. However, one look at their fee schedule for regular customers gave me a bad vibe, so I'll let my colleagues try it out for the first year.
We were offered HSAs managed by HSA Bank this year. Our plan has no minimum balance, waives some of the fees, and "allows" us to avoid the rest. However, one look at their fee schedule for regular customers gave me a bad vibe, so I'll let my colleagues try it out for the first year.
Feb 5th 2014, 9:38 pm
#17
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Thread Starter
Joined: Oct 2003
Location: Portland, OR
Posts: 974
Re: Flexible Spending Accounts - Total Sham
Not sure how many others here take advantage of FSA's but I'm counting myself in the no camp as of next year. Apart from seemingly always having to provide receipts for everything (makes you feel like you are cheating them), I just had a situation that proves that corporate robbery is alive and well.
Back at the end of Nov I had some dental work done. Paid $260, which was my ESTIMATED co-pay on the FSA card. Two weeks later (mid Dec) I get the usual 'please submit more details' email, which I duly do. Just after Christmas I get a letter from my dentist with a check for $116 attached saying that insurance paid more than the estimate and here's the difference back. Around Dec 28th I get an email saying that the FSA overpaid and they want my money back! By the time I contact them it is the new year and they are insisting that they get repaid for the overpayment.
I ask ok, fine, but since my company didn't allow a roll-over (IRS changed the rules late last year and most companies decided not to allow roll-overs) what will happen to the money? Get this -they tell me that since we are into the new year and my plan doesn't allow for a roll over the money is forfeited (going to my employer with a service fee deduction). I don't blame my employer here BTW.
So my money, that I have in my bank account (and yes I would pay tax on it if that were an option) has to be repaid and I have no option to spend it. Of course if I had any money left before the end of the year I would have spent it but I didn't due to the FSA's tardiness in getting this all figured out.
At this point I am getting more than a little annoyed and ask what will happen if I don't repay. They said they would suspend my FSA (which they have done), they would report me to the IRS and the account will go to collections along with penalties and interest. To cap it all since open enrollment is now closed, I can't withdraw from this years FSA contributions, which are $50 per month. So basically they are holding me over a barrel.
I can't wait for open enrollment this year to select no on the FSA. Good riddance!
Grr
- Tim, Aka grumpy old man
Back at the end of Nov I had some dental work done. Paid $260, which was my ESTIMATED co-pay on the FSA card. Two weeks later (mid Dec) I get the usual 'please submit more details' email, which I duly do. Just after Christmas I get a letter from my dentist with a check for $116 attached saying that insurance paid more than the estimate and here's the difference back. Around Dec 28th I get an email saying that the FSA overpaid and they want my money back! By the time I contact them it is the new year and they are insisting that they get repaid for the overpayment.
I ask ok, fine, but since my company didn't allow a roll-over (IRS changed the rules late last year and most companies decided not to allow roll-overs) what will happen to the money? Get this -they tell me that since we are into the new year and my plan doesn't allow for a roll over the money is forfeited (going to my employer with a service fee deduction). I don't blame my employer here BTW.
So my money, that I have in my bank account (and yes I would pay tax on it if that were an option) has to be repaid and I have no option to spend it. Of course if I had any money left before the end of the year I would have spent it but I didn't due to the FSA's tardiness in getting this all figured out.
At this point I am getting more than a little annoyed and ask what will happen if I don't repay. They said they would suspend my FSA (which they have done), they would report me to the IRS and the account will go to collections along with penalties and interest. To cap it all since open enrollment is now closed, I can't withdraw from this years FSA contributions, which are $50 per month. So basically they are holding me over a barrel.
I can't wait for open enrollment this year to select no on the FSA. Good riddance!
Grr
- Tim, Aka grumpy old man
Feb 7th 2014, 5:39 pm
#18
Forum Regular
Joined: May 2011
Location: New Mexico, USA
Posts: 231
Re: Flexible Spending Accounts - Total Sham
My FSA debit card experience has been great. Been using it for 5 years. I've probably submitted 10 receipts in that time.
Feb 7th 2014, 7:21 pm
#19
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Flexible Spending Accounts - Total Sham
I can't remember the last time I had to submit a receipt. As my FSA is administered by my health insurance provider, they automatically pay any out of pocket medical expenses I have. Plus the debit card can be used for things like vision expenses.
Feb 7th 2014, 8:01 pm
#20
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,448
Re: Flexible Spending Accounts - Total Sham
I have not been requested for receipts since before I switched to a HSavA more than three years ago. I don't know if the is a difference in the way that a savings a/c is administered.
Feb 7th 2014, 8:19 pm
#21
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Joined: Feb 2011
Location: WA state
Posts: 3,062
Re: Flexible Spending Accounts - Total Sham
I gave up on mine. The last HR person we had couldn't tell me if I had to almost immediately spend the money put into my FSA account during xmas week in that tiny time window since it didn't roll over. They just recommended on stocking up on contact lens solution, which you can't even do now the law has changed.
Feb 7th 2014, 8:25 pm
#22
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Flexible Spending Accounts - Total Sham
I gave up on mine. The last HR person we had couldn't tell me if I had to almost immediately spend the money put into my FSA account during xmas week in that tiny time window since it didn't roll over. They just recommended on stocking up on contact lens solution, which you can't even do now the law has changed.
Feb 7th 2014, 8:30 pm
#23
Lost in BE Cyberspace
Joined: Oct 2003
Posts: 22,105
Re: Flexible Spending Accounts - Total Sham
Since HSAs roll over, why wouldn't that be the preferred route for employers to seek out, rather than FSAs?
I should add that I know this sounds too easy, so perhaps I'm missing some really important points. In which case, someone will be along to tell me.
I should add that I know this sounds too easy, so perhaps I'm missing some really important points. In which case, someone will be along to tell me.
Feb 7th 2014, 8:40 pm
#24
Lost in BE Cyberspace
Joined: Jan 2006
Location: San Francisco
Posts: 12,865
Re: Flexible Spending Accounts - Total Sham
As pointed out previously, $500 max in an FSA account can be rolled over from this tax year onwards.
Last edited by Giantaxe; Feb 7th 2014 at 8:51 pm.
Feb 8th 2014, 12:05 am
#25
Account Closed
Joined: Oct 2003
Posts: 0
Re: Flexible Spending Accounts - Total Sham
I submitted the hospital receipt to say I was using $500 to pay towards M's Stent procedure. The receipt had the date of service, the facility name and the name of the doctor and showed the money was for a cardiac procedure. They still want more information. When I called they told me to fax a copy of the insurance EOB
That has less information than I already sent them...crazy
Feb 8th 2014, 3:38 am
#26
Forum Regular
Joined: Oct 2012
Posts: 111
Re: Flexible Spending Accounts - Total Sham
I have had a HSA for the last few (4?) years and have never had to submit a receipt, although the small print says that they can ask for them. Whatever I have left in the account at the year end rolls over, but that is usually a nominal amount. I max out my pre-tax contribution to the HSA each year and practically spend it all each year on "normal" medical expenses!......that is the total sham. The cost of healthcare in the US is disgraceful.
