FSA botched an overpayment repayment that can no longer be fixed; what are my options?

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InvisibleAerobar
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Joined: Mon Jan 15, 2018 12:33 pm

FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by InvisibleAerobar » Thu Nov 14, 2019 4:57 pm

Back in 2018, I was to pick up a prescription refill. I never did in the end, but my FSA credited me with the copay I would have paid ($30).

I called my FSA in 2018 re: this matter and was told that they will apply the copay amount against a future charge (in lieu of me actually mailing a check).

However, my FSA never actually did apply the overpayment, even though it does have a reference number for the phone call I made.

I found out about this, b/c my dentist charged me for exams, only to rescind the charges later by mailing me a check. I found out re: the failure to process the overpayment from last year when I called re: the incident from this year. I was also told that the overpayment of $30 from last year cannot be addressed, as the account is deemed to be closed.

So now I have to worry about what I should do, and what taxes are considered owed, despite it all stemming from my FSA botching the overpayment. Do I write a letter to the IRS? If so, should I include a check? (I'd presume the tax owed to be highest marginal rate x $30?). Would I be assessed a penalty as well?

Comments and suggestions welcomed

oldfatguy
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Joined: Tue Feb 27, 2018 1:38 pm

Re: FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by oldfatguy » Thu Nov 14, 2019 5:01 pm

I don't have any suggestions for what to do, but I am curious how your FSA reimbursed you for a prescription you never paid for. With my FSA, I have to make a claim for each and every expense to be reimbursed and upload documentation.

Topic Author
InvisibleAerobar
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Joined: Mon Jan 15, 2018 12:33 pm

Re: FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by InvisibleAerobar » Fri Nov 15, 2019 11:05 am

oldfatguy wrote:
Thu Nov 14, 2019 5:01 pm
I don't have any suggestions for what to do, but I am curious how your FSA reimbursed you for a prescription you never paid for. With my FSA, I have to make a claim for each and every expense to be reimbursed and upload documentation.
I wish it were like that

instead, it went as thus: pharmacy does auto-refill and immediately bills insurance; insurance takes this as sign that I've taken delivery and paid for the meds, never mind that I never picked up and called to cancel. Once insurance sees a charge, it gets forwarded to FSA, who sends an auto payment...

Someone obviously didn't think through all the possible scenarios...

cshell2
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Re: FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by cshell2 » Fri Nov 15, 2019 11:25 am

I would just forget about it personally. The IRS is never going to come auditing all your FSA receipts. The FSA administrator is supposed to be dealing with approving or denying claims.

I sometimes got some overpayments to claims because I would submit the EOB's as my "proof" of expense to be able to turn them in right away and occasionally the actual bill from the provider would come out less for whatever reason.

junior
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Re: FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by junior » Fri Nov 15, 2019 12:57 pm

On a different matter my FSA told me on the phone "Keep records in case you are audited".

That makes me think it's only going to be an issue in the very unlikely situation where you are audited.

I wouldn't worry about it.

Topic Author
InvisibleAerobar
Posts: 355
Joined: Mon Jan 15, 2018 12:33 pm

Re: FSA botched an overpayment repayment that can no longer be fixed; what are my options?

Post by InvisibleAerobar » Fri Nov 15, 2019 1:22 pm

Understood; thanks to everyone for chiming in.

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