Terminated Flexible Spending Account

[Guest msriccardi]

My company terminated the Flexible Spending Account on December 31, 2000. There was about $1,500 left in one person's account and they overpaid the limit on another person's account. They refuse to refund us because I am asking for the full $1,500 not the balance that is actually left in the account. I feel they had made an error in overpaying and should be held responsible for getting that money back. Do I have legal recourse to obtain this balance?

[SLuskin]

Who is "they", a TPA that you were wiring money to for claims payment?

Do you have a written service agreement with that company? There is usually a statement in the service agreement which addresses disagreements and how they will be handled. Ours mentions arbitration first, with the costs being split.

This is one more reason why we do not accept client funds, and have many other ways of reimbursing the claims.

[Lisa Hand]

Was it an Medical FSA account which was "overpaid"?

[Moe Howard]

You have no legal recourse .... unless the employer over-withheld from YOU or if YOUR legitimate claims were refused for processing, when you had balance in the FSA.