When can participants request reimbursement under the Medical Reimbursement portion of the Cafeteria Plan?
The maximum amount of reimbursement elected by the participant must be available at all times during the period of coverage or Plan Year (reduced for prior reimbursements for the same period of coverage). Thus, the Plan Year begins January 1st and on January 15th the participant incurs expenses that total the annual election the maximum amount of reimbursement would be total amount elected for the Plan Year, i.e. John elects $25.00 per payroll period (52) for a total of $1,300.00 per year. On January 21st John incurs $1,500.00 in Medical bills; he submits for reimbursement through the Caf Plan, he would receive $1,300.00 even though he has not had $1,300.00 withheld to date.
