Does anyone else have problems with their "flexible benefits" program(s)?

[KansDem]

My wife and I have a certain amount of money taken out of her paycheck as pre-tax amounts to be used for medical expenses. We've done this for several years now as it has become important since we have two children (doctor's visits) and both of us rely on prescription drugs (seven drugs a day).

Well the "flexible benefits" program where she works has really gone downhill in their service.

For starters, let's recap the requirements as I understand them for this "service:"
1) You can only join or change plans once a year;
2) You cannot change or drop the plan once you have enrolled;
3) You don't get back any amount that hasn't been used before the year is up;

Those are the basic requirements. Now for the company requirements who is handling the accounts for where my wife's employer:
1) Weekly requests must be received at the office by Tuesday of every week; if received on Wednesday, that request goes on the next week's request (see below);
2) Checks for reimbursement are mailed on: a) Thursday, b) Friday, or c) the following Monday (see below)

Now here's the thing: This company has been absolutely caviler about accounts for some time now. My wife has gotten into the habit of faxing her request at least twice on Tuesday to be certain the company has "received it." Too often, we wait for the reimbursement check to arrive only to realize that it's not coming. My wife then calls the company and discovers "they didn't receive her request." Then it goes on the next week's request (see above). Once someone at the company "found" the request on someone's desk under a pile of papers. We wonder how long it would have laid there. She now has to not only fax the request twice but then call on Tuesday afternoon to make certain they had indeed received it.

The company used to mail out the checks on Thursday, so we could expect the check by Monday or Tuesday (rarely it would arrive on Saturday). Then the company switched to mailing the checks out on Friday afternoon, so we could expect the check sometime at the mid to end of the following week. Now my wife has been told that the checks are readied for mailing on Friday, but not mailed till the following Monday, there by making the check arrive at about 1 1/2 to 2 weeks after it was initially requested. Anyway, this puts a little damper on financial situation since we spend a significant sum on prescriptions each month. She now has to call on Thursday (or whenever) to make certain the check was mailed.

So she now has to fax the requests twice on Tuesday, then call to make certain the faxes were received, then call on Thursday (or whenever the company says they mail checks at that point in time) to make certain the check was mailed. Any problems result in repeating the process.

What's bad is we can't opt out (see above); we can't go with another company (see above). And when my wife complains to the company about a change in it's policies or overall bad service that requires an explanation, she's told to speak with the "site manager;" the one at her workplace who is charged with overseeing this program for the employees. And he hasn't been very helpful, often pleading ignorance, in resolving issues and problems.

OK, so we have a little problem with this program that was set up to "help" people cut down on the tax bite. Although this is an annoying inconvenience, we can live with it (although we would really like to not have to). But, my main concern is, and this it a BIG CONCERN: Is this the kind of "service" we will come to expect from the private sector for any program that BushCo and the lapdog Congress decides to enact as a substitute for Social Security?

I hope not.

[Modem Butterfly]

1. Flexible Spending Plans are like any other benefit plan

You can't simply add or drop benefits in the middle of the year without a life changing event (marriage, divorce, death of a spouse/dependant, birth or adoption of a child, loss of another benefit plan) because it costs money and time to process changes. So in that respect, your FSA is like your other health plans.

That being said, your plan administration sounds utterly abysmal.

[MsTryska]

5. sort of, but not exactly -

FSAs are like any other Pre-Tax benefit plan.

but i do agree - the plan admin sucks!

[getmeouttahere]

2. A program like Social Security....

or any social program that has been administered by the public sector for 70 years has and always will be best administered by the public sector, not a private firm. We don't want to believe it, because of all the propaganda we hear, but SS has been administered "efficiently" all this time. How many more privatizations must we endure before we wake up to the fact that the free markets aren't the answer to everything.

To understand how government can deliver programs efficiently, I suggest reading "The Efficient Society - Why Canada Is As Close To Utopia As It Gets" Yes, I know the title sounds silly, but the underlying theme, that we often sacrifice efficiency for liberty, rings true. It is written not just from a Canadian perspective, but from an North American perspective as well. The author is Josepth Heath.

[madrchsod]

3. yup--it`s all bullshit

there are medical savings programs that are just like 401k`s ,they are well worth investing in but this plan is bullshit. i work at the one of the largest printers in the world and they came out with this crap and no one in our plant bought it. they actually told us how to cheat on it to get certain things paid! we didn`t have to sign up thank god. just think of all the money they are making by not sending out payments?
get a hold of the state board of insurance and file a complaint..they may not do anything but you have put the insurance company on notice.

oh yes make sure you get everyone`s name that you talk to or fax to..email and fax everyone on the list-find out who their bosses are and the upper mangagement of the insurance provider-include them in all e`mail and faxes. trust me, it works if enough shit hits the fan.

[getmeouttahere]

4. Can the BBB help in this sort of thing?

it can be done online, if so

[Castilleja]

6. My husband's company sent this type plan out

for employees to look over. The part where they keep any money you don't use was what convinced me that there was no way in hell we would be joining up. Who on earth thought this was a plus? My husband thought it would be good for tax purposes. I thought we would just pass on that one...

[RobinA]

7. That's Pretty Standard

for those plans. I think you were confused by the word "flexible." I was once too, but never again.

[undeterred]

8. The requirements for mine were about the same

but I had really good service. Sent over a fax, and 2 days later I had direct deposit.

Its true that you can't get back money that's been taken out but not reimbursed to you. But you can be reimbursed with money that hasn't been taken out of your check yet. Example: Last year I worked as a contractor and was having $2000 taken out- I was laid off from my job in August and had already been reimbursed for $1800- a few hundred dollars more than they had deducted from my checks by that point in the year.