What FSA plan year would you apply this co-payment to?

[Mary C]

Our health care plan has an inpatient hospitalizaiton copay of $500. The inpatient hospitalization began in November 2003. Patient was released in January 2004.

Employee was not enrolled in flex spending account for 2003, and signed up for $650 for 2004. He has sent in a claim for reimbursement of the copay from the flex spending account for 2004.

Is this expense eligible for 2004 reimbursement and can you provide why?

[Sandra Pearce]

I would consider it a 2003 expense if the expense would have been incurred even if the stay had only been a day or two in November 2003. The fact that the stay continued until 2004 seems irrelevant to me.