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Disgruntled Participant

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Can you prevent a disgruntled employee from participating in the company offered FSA plan was asked by a client who is having difficulty with an individual employee understanding the how the process of a Health Care Spending Account Debit Card works.  Additional information was requested for a debit card purchase and after four notices were sent out the card is shut off until the substantiation is received, the participant is now claiming his money is being held up and fails to realize the rules of the plan are being followed.  Any guidance would be greatly appreciated.

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As a general rule, the answer is no.  You appear to have a bigger issue here and you may want to resolve it quickly before it escalates.  The FSA rules require substantiation of the expense and if not provided the reimbursement can be, and should be, denied.  But to turn off the card raises this to another level, and while I understand the frustration, I do not recommend such an action.  Rather, just deny any other reimbursement amounts not substantiated.  Keep in mind, this benefit is an ERISA benefit, funded with employee money, not employer money.

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  • david rigby changed the title to Disgruntled Participant
11 hours ago, QDROphile said:

How does one deny “other reimbursement amounts” if payment is by debit card and the card is not shut off?

Good point, I was thinking about a paper claim submittal.  My point still remains, there is a bigger issue here that the employer should address, as to why the employee cannot understand the procedures.  Changing my reply, lol.

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