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I have a question about PayFlex. Does UCAR have a policy in place whereby
it routinely reviews the service levels provided by FSA (Flexible Spending
Administration) providers such as PayFlex?

I personally, and several of my colleagues, have experienced nothing but
problems with PayFlex. This was not the case with Denver Reserve. For
example, it now seems that PayFlex requires receipts on literally every
charge. They routinely lose the paperwork, requiring employee time to
resend it. Finding a real, live, and helpful person on the other end of the
phone is always an adventure in frustration. Even after receiving the
paperwork, the folks at PayFlex often turn around and dispute the charges
(for example, monthly payments for my daughter’s braces).

PayFlex will only provide one card (whereas Denver Reserve provided two),
which makes it a huge hassle to “share” the card in the case of families.
It always seems that the card is with the wrong person at the time that it
is needed, such as when taking a sick child to the doctor.

Perhaps the last straw for us came this past week. PayFlex waited until the
yearly deadline had passed, then sent us a bill for a disputed charge with
my daughter’s braces. This was the only communication that we received from
them, and now we are spending hours trying to clear up the mess.

To put it simply, the service from PayFlex is horrible. Surely there must
be a better FSA available to UCAR?

Answered on April 15, 2008


Thank you for your question. We also have seen that the service level
provided by PayFlex is not as good as Denver Reserve. (Uunfortunately,
Denver Reserve was acquired by PayFlex.) Because of the service concerns
about PayFlex, the UCAR Benefits office interviewed several other companies
that provide flexible spending administration. PayFlex offers better
services and more benefits (such as debit cards) than any of the other
companies. We will continue to look for vendors, and if you hear of a good
one from a colleague or friend, please let us know.

We have expressed our concerns to PayFlex with its customer service
shortcomings. They have assured us that they are working on improving
response time.

With regard to your other points, PayFlex is required by IRS regulation to
obtain receipts on a quarterly basis whenever a claim is paid with your
debit card. The debit card charge must be verified as a qualified expense.
If you pay your insurance co-pay with your debit card you should not
receive a request for a receipt of that transaction. All other card
transactions will require a copy of the receipt. If you have been asked for
a copy of your claim, be sure that it includes the service that was
provided, the date of the service, and the amount. If you have not sent
this to PayFlex, your debit card will be inactivated until the receipt has
been submitted to PayFlex.

Participants can order additional cards in the name of their spouse and/or
dependents for no additional charge either by calling customer service
(800-284-4885) or by logging in to their accounts at,
clicking on “debit cards,” then clicking on “card order” and filling out
the online form.

We apologize for the problems with PayFlex and are working on resolving
them. Please contact Cyd Perrone or Konnie Carrillo in Human Resources with
any problems you encounter with PayFlex. We can help get the issue resolved.

—Cyd Perrone, Human Resources Benefits Administrator