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Section 125 - FSA midplan year increases


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Guest dlharkness
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In our area we are seeing 25% to 45% premium increases for employer sponsored health insurance plans. As a result, employers are increasing the contribution of premiums by the employees. They are also increasing the deductibles from 250 to as high as $1500 per family member. As a result, employees are requesting that their Flexible Spending accounts be increased mid-plan year to help offset the increased high deductibles and the inceased out-of-pocket costs for loss of benefits (i.e., prescription coverage). Can the FSA be increased mid-plan year by the employees? How does the government audit this?

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