HSA Provider unable to provide access to my account

In mid August, the debit card tied to my HSA account began getting declined even though I have significant funds in my account. It remains non-functional almost two months later.  
 

The institution which provides this service was selected by my employer. Health benefits including HSA are part of my compensation. 
 

The HSA provider indicates that they experienced some kind of technical issue which is effecting my account.  They change their story each time I call and cannot provide me an ETA for resolution. After two months, I’m concerned that I may never gain access to my funds. 

Are there specific compliance rules that pertain to this situation?  Is this regulated by the FDIC? Can I report this? Should I speak with an attorney?  Do I have the option to move the funds?

Thank you in advance for any guidance you can provide. 

One option would be to reach out to the applicable state banking regulator: https://www.consumerfinance.gov/ask-cfpb/how-do-i-find-my-states-bank-regulator-en-1637/

Another option would be to submit a complaint to the CFPB: https://www.consumerfinance.gov/complaint/

Note that even if your debit card is deactivated, you should still be able to perform withdrawals from your HSA account to your bank account.

I would contact your employer’s HR team. 

Yeah, that’s part of the problem.  My employer’s HR dept refuses to engage with the issue. They keep telling me it my issue to work with the provider.  

Re: Withdraws.  If I move funds out of my HSA to my bank account, isn’t that a taxable event?  

A distribution from the HSA is treated the same regardless of whether it's via the debit card or a standard withdrawal.  So a distribution for a qualified medical expense will always be tax-free whether via debit card or a reimbursement to yourself.  A non-medical distribution will be taxable and (if under age 65) subject to a 20% additional tax.

• Here's a quick summary: https://www.newfront.com/blog/using-an-hsa-for-non-medical-expenses

Here's the recordkeeping rules--

IRS Publication 969:

https://www.irs.gov/pub/irs-pdf/p969.pdf

Recordkeeping. You must keep records sufficient to show that:.

• The distributions were exclusively to pay or reimburse qualified medical expenses,
• The qualified medical expenses hadn’t been previously paid or reimbursed from another source, and
• The medical expenses hadn’t been taken as an itemized deduction in any year.

Don’t send these records with your tax return. Keep them with your tax records.

Art, if you are willing to email me at roy@mrhsa.com, I would be happy to help you get some answers before you reach out to banking regulators or the CFPB. I am a consultant to the American Bankers Association HSA Council and may be able to help you get this resolved pro bono.