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California Enacts New Notice Requirement for FSA Terminations

The state of California recently enacted a new notice requirement for employers with employees in the state of California in Assembly Bill No. 1554. Effective January 1, 2020, employers will be required to notify health care and dependent care flexible spending account participants, as well as adoption assistance plan participants, when the claims filing deadline for the individual is before the end of the plan year. Individuals must be notified in two different forms, only one of which may be electronic, in order to satisfy the requirement.

Employers whose practice is to provide a different claim filing deadline (e.g. 60 or 90 days following the termination) for terminated employees or employees who otherwise experience a loss of coverage will be most impacted by this ruling. Employers who do not institute a different claim filing deadline for terminated employees (e.g. employers who allow terminated employees to file claims through the standard claim filing deadline for active employees), including Flores clients using Flores generated plan documents, should not be impacted by the new ruling.

If you think your plan may be impacted by this ruling, please contact your legal counsel or benefits adviser for assistance reviewing your legal documents and to determine how you will satisfy the new notice requirement.


About Flores

Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.

  • Cindy Bistany
  • Director of Business Development and Strategic Alliances
  • (828) 693-3595
  • cindy@flores247.com

  • Clay Peddycord, GBA, CFC
  • Director of Business Development and Strategic Alliances
  • (800) 532-3327
  • clay.peddycord@flores247.com

  • Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
  • Director of Business Development and Strategic Alliances
  • (800) 532-3327
  • aaron.hunt@flores247.com

  • Donnie Harms
  • Director of Business Development and Strategic Alliances
  • (800) 532-3327
  • donnie.harms@flores247.com
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