How to get payment regarding a flexible spending account for daycare expenses?

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How to get payment regarding a flexible spending account for daycare expenses?

What do I do if I am having issues getting reimbursed for my daycare expenses? I have contacted the insurance company over 10 times, I have talked to 3 supervisors, provided the proper documentation but am still waiting for the money. I have paid in to be reimbursed for last month. I am exhausted with contacting them. FSA is supposed to be a helpful service and it’s been a mentally exhausting joke so far. Can they take a month to reimburse funds which I have paid in, when I have provided proper documentation? I have asked for corporate contact or for someone above the call center management and they say there is no one.

Asked on July 4, 2017 under Employment Labor Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

There is no specific time frame for reimbursement in the law, though if the documentation for the FSA specifies a time frame, that time frame is enforceable legally. Otherwise, while there is no set or hard-and-fast standard, there is still the concept of a "reasonable" time period. While admittedly subjective and hard to define, the law does impute a requirement to all contracts and agreements (like the policy or agreement establishing the FSA) for the parties thereto to act in a "reasonable" fashion, including with reasonable speed or alacrity. Once you conclude that there is no doubt but that they have taken an unreasonably long time to pay you, you could sue the insurer for "breach of contract"--for violating their obligation to reimburse you from the account.


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