Flexible Spending Account: Use It or Lose It

Although employer health plans continue to increase deductibles, co-pays and premiums, many still offer flexible spending accounts (FSAs) to their workers. A FSA provides the opportuniity for empIoyees to deduct pre-tax dollars from their paychecks and deposit those funds in an employer-sponsored account to pay for medical expenses not covered by the employer’s health insurance plan. If you’re fortunate enough to have a FSA and have been regularly adding to your account, you must spend those dollars before the end of the year or forfeit those set-aside savings.

What Is Covered

According to the IRS, FSA covered expenses include the costs of diagnosis, treatment or prevention of disease. They do not include expenses that are merely beneficial to general health. FSA account funds are frequently used to pay for medical, dental, vision and prescription deductibles and co-pays.  Some over-the-counter items are covered, whereas other procedures and supplies are covered only with a letter of medical necessity.

What Is Not Covered

Insurance premiums, cosmetic surgery, spa treatments, teeth whitening and routine hygeine items are among the many uncovered items.

For a complete listing of FSA allowables, consult with your FSA administrator, who is well versed in the IRS regulations.

Learn more? Order Surviving the U.S. Health System: Insurance, Providers, Well Care, Sick Care at https://surviveushealthsystem.com/books-store/and peruse the blog archives.