Which year to claim reimbursement?

[Guest Carolynn]

I know the answer is in my EBIA manual, but I can't locate it just when I need it! I have a participant who was fitted and billed for a hearing aid in the old plan year, but won't actually take receipt of the hearing aid until the new plan year. For which plan year can she claim the expense? I believe the correct answer is the old plan year, since that is the year the expense was actually incurred, but someone else said perhaps she has a choice of plan years?

Thanks! Carolyn

[papogi]

This should be reimbursable in the old year, the year the hearing aids were fitted and billed. Reimbursing from the next year is not allowed because it would make it too easy to predict expenses. For example, assume an employee and spouse went in for hearing aids in December, although they will not receive them until January (they have a calendar year HCFSA). They incur a total of $700 in December. If this is supposed to be paid from the next plan year, it's too easy for the employee to tack on $700 to his/her election, since the expense is already known.