FEDweek

FSA Claims Processing Blackout Just Ahead

The deadline in the FSAFEDS flexible spending account program for faxed or electronic claims and for paperless reimbursement claims is Friday (July 29) in advance of the upcoming claims processing blackout period (claims submitted by mail had to be postmarked by July 20). Claims submitted by those deadlines will be paid by August 8 if approved. The processing blackout will be in effect for the month of August as the program transitions to a new provider. During that time, payroll withholding into accounts will continue and eligible expenses incurred still will be reimbursable, although they won’t be accepted for reimbursement until September 1. “OPM regrets that the blackout may cause inconvenience for some FSAFEDS participants and we understand their concern. However, given the broad scope of the transition, the sensitive nature of the data involved, and the significant security requirements, a claims blackout period of four weeks is necessary,” OPM said in a statement. The Federal Employee Education and Assistance Fund has said it will make no-interest loans available to those experiencing a financial hardship due to the delay in processing.