Health Care Flexible Spending Accounts: Don’t Lose Your FSA Money
Here’s my annual reminder (to myself, really) to get back all the money sent into Healthcare Flexible Spending Accounts (HC FSA) before it disappears forever. The maximum salary deduction limit is $2,700 for 2019. You can pick this during Open Enrollment season, but it can also be adjusted during “qualifying life events” like the birth of a child, marriage, or divorce.
Quick ideas. If you didn’t exhaust your funds with insurance copays or deductibles, here are eligible items that you can still buy over-the-counter without a prescription. Just order things online and then submit the receipt. Amazon even has a special FSA-eligible page that accept FSA/HSA debits, complete with an “under $25” and “little-known eligible items” section.
Certain over-the-counter (OTC) items such as cough medicines, pain relievers, acid controllers, and diaper rash ointment require a prescription for reimbursement. This is an added hassle, but worth a quick ask if you have a doctor appointment anyway.
When getting a receipt, make sure it clearly includes the following:
Date of service or purchase
Name or description of the item
Amount of purchase
Deadline extensions. Employers have the option of adding one of the following:
Some plans allow a grace period until March 15th of the following year as opposed to a December 31st deadline to use your funds, but it may only apply to claims and not late purchases. Check with your employer.
Some plans allow participants to carry over up to $500 in unused FSA funds into next year. Check with your employer.
Big, exhaustive lists. Some of these are searchable by keyword as well.
FSAFEDS, Federal Flexible Spending Account Program
Finally, only your FSA administrator can provide you with the exact guidelines for reimbursement according to your plan. I learned this the hard way when our FSA administrator switched one year from in-house to Conexis (now since acquired by WageWorks). Wow, Conexis was a pain. I had to submit some claims three times before finally getting approved. If you count the time wasted, I probably lost money by participating in the FSA at all. The skeptic in me suspects that this bureaucratic nightmare is part of their business model. (Remember mail-in rebates?) Guess who gets to keep un-reimbursed FSA funds? The employer, which can then use the money to pay for… the FSA administrator.
p.s. If you have a Health Savings Account (HSA) and think you are ineligible for an FSA, look for a “limited-purpose FSA” option that is restricted to dental and vision care services. These have the same max annual salary deduction.
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