If you have received notices from the Flexible Spending Account (FSA) Administrator, ConnectYourCare (CYC) about 2020 unsubstantiated health care claims, you need to substantiate, substitute or repay your unsubstantiated claims (preferably by December 31, 2020). This page includes information on the steps to take to resolve your claim(s), the payroll withholding process and a timeline of what may occur between now and the end of March 2021 if you do not resolve your claims by December 31, 2020.

Basics of Unsubstantiated Health Care FSA Claims

If a health care FSA payment card transaction is not automatically substantiated, you will be notified of an “unsubstantiated claim” that needs to be resolved by substantiation, substitution or repayment. You will receive notices about the unsubstantiated claim via the email address associated with your CYC account:

  • 10 days after the transaction
  • 40 days after the transaction
  • 70 days after the transaction
  • 85 days after the transaction

Your debit card will be deactivated after 85 days, until your claims are resolved. Check the junk folder in your email for these notices. If you do not have an email associated with your CYC account, the notices will be sent to the home mailing address associated with your CYC account.

CYC sends these notifications for every health care FSA unsubstantiated claim throughout the year. The exception is if you use your payment card late December 2020 and/or early January 2021. Since the payroll withholding process begin in January, you may not receive all of the above notifications prior to the start of the payroll withholding process.

Resolving Unsubstantiated Health Care FSA Claims

Prior to December 31, 2020:

You may submit documentation to resolve your claims using the myCYC mobile app, CYC portal or by completing a CYC FSA Reimbursement Claim Form. To resolve a claim, you should do one of the following:

  • Substantiate the original claim with documentation. Documentation may include:
    • Explanation of benefits (EOB) provided by your health or dental insurance carrier (recommended when available)
    • Itemized statement or detailed receipt
  • Substitute the original claim with another eligible expense. A substituted claim cannot be a claim previously submitted and must be for the correct plan year.
  • Repay the amount of the unsubstantiated claim directly to CYC. To do so, log into your CYC account or contact CYC directly to walk you through this option.

after December 31, 2020:

You may submit documentation to resolve your claims via fax (443-681-4601) or mail (CYC Document Submission: PO Box 622337, Orlando, FL 32862-2337). To resolve a claim, you should do one of the following:

  • Substantiate the original claim with documentation.
    • Explanation of benefits (EOB) provided by your health or dental insurance carrier (recommended when available)
    • Itemized statement or detailed receipt
  • Substitute the original claim with another eligible expense. A substituted claim cannot be a claim previously submitted and must be for the correct plan year.

Whether you substantiate or substitute the original claim, your submission must also include claim ID, dollar amount and participant name. You may obtain the claim ID from the CYC communication sent to you on 12/18 or 12/29, from your online CYC account or by contacting CYC via phone.

Submissions after December 31st may not be done through the myCYC mobile app, CYC portal or by completing a CYC FSA Reimbursement Claim Form.

UW System Procedure

CYC generates reports that reflect employees with health care FSA unsubstantiated claim(s). The reports are sent to UW System. If you appear on the report, you will be sent emails and/or home mailers from CYC and an email from UW System on specific dates (see Communication section below). Reminders:

  • Once a claim is resolved, it can take several business days to post to your account. Due to timing, you may resolve a claim and still receive a notification and go through the payroll withholding process. If you contact CYC and confirm everything is resolved, you may disregard the notice. Payroll withholding will continue through March and if necessary, you will receive a refund from CYC in April.
  • Due to the nature of incurring claims, the reports of employees with unsubstantiated claims are continuously changing. This means that as claims are submitted and/or resolved, you may appear on one report and not on the next (and vice versa).

Communication

Additional communications are sent to you if you still have unsubstantiated FSA claims toward the end of the plan year. All notifications are sent to the email and/or mailing address associated with your CYC account.

Payroll Withholding Process

In January, CYC will generate a report of employees with health care FSA unsubstantiated claim(s). This report is used for the payroll withholding process. UW System sends an email to affected employees shortly thereafter making them aware that the payroll withholding process will begin and that it will continue through March 31st. Unsubstantiated claims payroll deduction(s) will occur as follows:

Balance Amount Action
At or Under $100 The balance will be taken out of one paycheck (biweekly or monthly).
Greater than $100 The balance will be divided into even deduction amounts per pay period until the end of the run-out period (March 31st).

Unsubstantiated claims payroll deductions will be withheld from the following paychecks:

Monthly-paid Employees
Pay Period Pay Date
January 02/01/2021
February 03/01/2021
Biweekly-paid Employees
Pay Period Pay Date
01/03/2021 – 01/16/2021 01/28/2021
01/17/2021 – 01/30/2021 02/11/2021
01/31/2021 – 02/13/2021 02/25/2021
02/14/2021 – 02/27/2021 03/11/2021
02/28/2021 – 03/13/2021 03/25/2021

Payroll Withholding Process – Frequently Asked Questions

I substantiated my claims with CYC a few days ago; why did I receive the payroll withholding notice in January?

The substantiation process and payroll withholding processes are complex. There is a chance your claims have been resolved; however, you also appeared on CYC’s unsubstantiated claims report. This is likely a timing issue. However, payroll withholdings will continue through March 31st. If necessary, after March 31st, CYC will issue a refund.

May I resolve unsubstantiated claims during the payroll withholding process and if so, how?

Yes. You may do so until March 31, 2021; however, you will still be included in the payroll withholding process. After December 31, 2020, claims must be resolved via fax or mail. Refer to the “After December 31, 2020” section above under “Resolving Unsubstantiated FSA Claims” for additional information. If necessary, after March 31st, a refund will be issued by CYC.

I used my CYC card mid/end of December and only received one communication from CYC requesting substantiation. In the past I have received multiple communications. Why is pay being withheld without giving me ample time to resolve my claims?

This is a timing issue. Per the program requirements, UW System must wait for the plan year to end (December 31st) to recoup unsubstantiated claims through payroll withholding. Additionally, the program requirements do not allow for payroll withholding after March 31st. The short window to recoup unsubstantiated claims may not allow for all of the standard communications (10th day, 40th day, 70th day and 85th day).

Why should I resolve unsubstantiated claims after the payroll withholding process has begun?
If you decide to substantiate your claims, a refund will be issued by CYC. Additionally, your unsubstantiated claims will not be sent to ETF to collect your unsubstantiated claims debt if you resolve your claims on your own.

Inactive Employees

If you are no longer an active employee:

  • You are responsible for updating your email and mailing address directly with CYC.
  • If you do not resolve an unsubstantiated claim with CYC, it will be converted to business debt.

Questions?

For questions on how to resolve a health care FSA unsubstantiated claim and/or the status of a claim or refund, contact CYC at:

833-881-8158
service@connectyourcare.com

Every effort has been made to ensure this information is current and correct. Information on this page does not guarantee enrollment, benefits and/or the ability to make changes to your benefits.

Updated: 01/12/2021