Remember FSA Use or Lose Feature

Federal employees who are currently enrolled in flexible spending accounts for the 2003 plan year should remember that the plan carries a “use or lose” feature. That is, any money in accounts at the end of the year is forfeited. Faced with that situation, FSA enrollees sometimes stock up on covered medicines and supplies in order to use up any unspent money in their accounts. However, that does not mean that claims actually need to be paid or even submitted by the end of the year. Claims for either health care or dependent care services rendered or payments made before the end of the year will be considered for reimbursement if they are submitted within 120 days from the end of the year-that is, by April 29, 2004.