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I am leaving my company. I have $1650 in my fsa that is available for use. I would like to pre pay my Dentist for services from my FSA card. Is that ok to do?

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  • what is the procedure? If it takes multiple appointments will the first one take place before your last day of coverage? Jan 31, 2019 at 18:36

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If you mean you want to give your dentist money from your FSA for unspecified future services, then your insurance company is not going to permit this. Insurance payments must be for services actually delivered. Anything else is too open to fraud.

If your FSA is not handled by an insurance company, but by your employer direct, then they still will not permit this. FSA payments must be for health services. Usually this is for tax reasons - the company has stated to the IRA that these payments are for health services, and to use them for anything else would be tax fraud. Again, making prepayments to your dentist is too open to fraud to be permitted.

In the unlikely event that your FSA is simply a fund which your employer has designated an FSA for some reason, but can actually be used for any purpose, then you may be able to negotiate this.

If you are looking at paying for a procedure that starts while you still have coverage, even if it ends while you are out of coverage, that may be permitted. you will have to wait until it is finished to claim.

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    An insurance company wouldn't be involved here.
    – quid
    Jan 31, 2019 at 21:22
  • @quid "insurance company" here is the dental insurance company. I have an FSA (not an HSA) and my medical insurance handles the claims (which are transmitted from a separate dental insurance company) and authorizes payment to me from the FSA account. I can't access it directly.
    – mkennedy
    Feb 1, 2019 at 5:43
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    @mkennedy FSA is an employer program. You opt-out of some amount of income but get access to that sum free of taxes provided it is spent on properly qualified healthcare expenses. You can have no insurance at all and pay for a cavity or x-ray or whatever with FSA funds. Your employer has an apparently highly integrated program but this is not an insurance issue.
    – quid
    Feb 1, 2019 at 5:55
  • FSA is an employment benefit, elected in much the same way as insurance and arranged by HR, but the account will be with a funds custodian (Optum Bank seems to be a very popular one) and not with the insurance company. The only way the insurance is involved is in determining which of the charges are paid by the coverage and which are the patient's responsibility.
    – Ben Voigt
    Feb 1, 2019 at 16:52

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