Pre-Natal Care Spanning Two Flex Plan Years

We administer our own Cafeteria Plan, Medical and Dependant FSA's. We have an employee whose baby is due in November. She was billed in May for the 7 months prior to birth, covering all doctor visits. Our plan began in June, but she met her maximum last year, so wants to carry over the billing for this year. We know some of the $950 charged in May for the period through September is for the visits this plan year.

I’ve been advised that because medical flexible spending accounts make exceptions only for orthodontia situations and not for pre-natal care, we cannot allow her reimbursement this plan year because the whole cost was billed last plan year. My position is that because Medical FSA’s reimburse on the date of the service, it should be covered. Any advice?


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