Flexible spending - Just how flexible is it???

I have had a FSA now for about 3 years. My particular one allows me to use a debit card from their company in addition to submitting paper claims.

For those of you unfamiliar with this, in short, this is an account that your company will automatically take pre-tax money from your check and deposit it in this account for you to spend on medical co-pays, prescriptions, child care, OTC meds and supplies etc. Basically, it saves money in the long run.

The IRS has rules for these accounts as well. The FSA company that my place of business uses is called Payflex. They have diferent levels of service as most companies do. For my place of business, we are somewhere in the middle. The rules that the IRS had when I first joined the account 4 years ago, were, any charge on the card that was not an even dollar amount required a receipt to be faxed to them to verify that the card is being used properly.

They changed the rules, but did not notify the plan participants. Now one must submit receipts for every single thing. I think that makes more sense, though there communication skills could be re-vamped a little.

So, let me tell you why I chose this topic today. I logged into the website to verify the status of my card as it was declined and I have an obscene amount of money still available. There is no bill to pay since its prepaid, so I am confused. I can only see the words "permantly inactive" on the screen and my head spins around.

So I call the company and I get a young chick with attitude.... just my luck, someone who likes to fight, working customer service. This aught to be good. I explain my issues to her, she, nicely at first, advised me that new cards had been shipped - in January of 2006. Clearly mine didn't arrive, and my old was working till recently. So I share that with her and she tells me its not possible. Of course, my card activity proves her wrong, which sent her into a tailspin. She reviews the account and tells me that my new card will not be shipped to me until I clear up some receipt paperwork that is missing.

I can't tell you how I reacted but picture Linda Blair and your probably close. I was provided by the individual I was working with 6 items that needed paperwork. I hit the roof because well over half had been provided more than twice and some up to 5 times. with verbal confirmation. I wanted confirmation in writing but they don't do that for paperwork to back up card claims, only paper claims.

So now, I have to spend the time to locate these 6 items in my files, some as far back as 2004. You have to be kidding me. 2004???? Thank goodness it was 20 dollars because the vendor I used may not have the information I need on this if I cannot find it myself.

The other half of the problem is my laptop crashed in July. I lost all my medical records, electronic receipts etc. This means that i have to go back to Medco, CVS and FamilyMeds and hope they can assist me in re-constructing my records so I can have my card released.

It's a pain in the butt however this year my benefits plan is changing and I am going to need this card more than ever. I will now be paying a percentage of prescriptions rather than just a flat fee like this year.

I'm not sure that the title Flexible account is accurate. Though when the card is working its flexible and peace of mind during emergencies, however the upkeep and maintenance is a pain in the butt. Mostly becuase these people operate soley by fax. I would LOVE them to use emails. I put in the suggesstion with psycho girl that they should send email notificiation of receipt of all documentation whether its for a paper claim or a card claim and they should also accept email documentation as well. I'm not holding my breath but it would sure make things easier for me.