The FSA Grace Period:

The State of Oregon has adopted the 2 ½ month grace period for incurring Flexible Spending Account (FSA) claims now allowed by the IRS.  This means that you now have until March 15, 2008 to incur claims against your 2007 FSA.  The State of Oregon adopted this amendment to reduce the chance that a participant in the FSA program will forfeit any funds. 

Only those who have FSA coverage through December 31, 2007 can continue to incur claims against the 2007 plan year for services provided through March 15, 2008.   

All FSA claims for services provided January 1, 2008 through March 15, 2008 will automatically be processed against the 2007 plan year first if filed by the claims filing deadline for that plan year.  If your claim exceeds the available funds from the 2007 plan year, any excess will be automatically applied to the 2008 plan year. 

Please note that if you use your FSA debit card to pay for expenses during the FSA grace period (January 1st, 2008 - March 15th, 2008), the purchase will be applied towards your 2008 plan year balance.  FSA debit card purchases during the grace period cannot be used to access funds from the 2007 plan year. 

Example 1:  Kristen has $50 remaining in her medical FSA at the end of the 2007 plan year and has no more expenses to submit with dates of service during the actual plan year.  Two weeks after the end of the plan year, Kristen goes to her dentist and incurs a charge of $145.  She submits a claim to ASI.  ASI’s reimbursement software processes the claim and $50 is applied to the remaining balance from the 2007 plan year, and $95 is applied to the 2008 plan year’s balance. 

Example 2:  Kristen submits the claim for her $145 in dental expenses, but, knowing that she has a charge from the hospital for services provided during the past year, but has not received the statement yet, Kristen wants the entire $145 to be applied to the current year. Kristen includes a note with the claim packet asking to apply the entire dollar amount to the new plan year.  ASI’s claim processor applies the entire reimbursement request to the new 2008 plan year. 

The State of Oregon's claims filing deadline is March 31, 2008.  All claims must be postmarked or faxed by this date, or they will not be accepted!