Our Flexible Spending Account Rules Suck: Do Yours?
We typically don’t shy away from free money, especially when it’s offered through work. The Flexible Spending Account (FSA) is something we take advantage of every year. This year is the first year we participated in it at my current company and OMG, I’m not participating next year. Yep, I’m paying taxes on that money and using it how I please, because they have made it so cumbersome, that even tax free, it’s not worth the hassle. That’s it, rant over, thanks for stopping by. Kidding, but if you want to find out how bad it really is, read on.
We WERE Spoiled
Our last company was fairly liberal with their FSA. They had spending cards you could use like a debit card, and if things were covered it would get split out at the register at the time of payment. It was super convenient. You need some over the counter (OTC) drugs, medicine, what not, no problem, just pick it up and use the card. Our family suffers from seasonal allergies, so this was easy enough for us to use and even if it got close to the end of the year and we had money left over (not likely with young kids) we could spend the last of it in this manner.
Throughout the year, we could also submit receipts if we didn’t have our card on us when we went to purchase something. It was a fairly painless process – log in – submit receipt – receive check a week or so later. Easy Peasy. Not so at my current company. Lord did we have it easy and not know it…
How It’s Overly Cumbersome
This is the first year we’ve had to use my company’s FSA, since we had just stuck with using Mrs. SSC’s company for the FSA portion. Ah, the joy of having 2 decent options to choose from. While my company rules on everything else health related, their FSA is set up to be so restrictive, it’s not even worth it. I contributed $500 to mine this year as a hedge against a run of ear infections, colds, or who knows what else may go on with kids. It’s a pretty safe bet we’ll spend it somewhere throughout the year though, so I wasn’t too worried about it.
Earlier last month, I remembered I had put that money in the account, but couldn’t remember if we had spent it, so I called to get a balance and request a spending card, so we could get that dealt with. Then I found out my company doesn’t support spending cards. Nope, you can’t use a card to cover anything. We pay out of pocket and then submit the receipt for reimbursement. Okay, not the end of the world, Except.
A typical receipt doesn’t cut it. It needs to have the providers name on it, my name on it, the reason it was charged on it, and the medical reason. So, the reason it’s charged might be copay for dr visit, but they want to know dr. visit for what. That calls for another form to be filled out and submitted. The lady I spoke with said it typically takes 2-3 submissions before a claim is authorized. Ugh…
Over the Counter Needs a Prescription?! WTF?!
Yep, the laundry list of items that are over the counter (OTC) and typically covered in most FSA’s (I’m not just ranting on nothing right, aren’t those covered in your plans?) have to have a prescription. A frigging prescription for Ibuprofen, Advil, Allergy Medicine, Sudafed, cold medicine, things we can walk into any 7-11 and walk out with in our hand via no prescription because they’re OVER THE COUNTER…. Oh Lord, my blood pressure gets raised just typing this.
If we want it to be reimbursed, we need a doctor to fill out a Form documenting that it’s a medical necessity – yeah more forms, or we need to schedule an appointment, go to the office, get them to write a prescription for anything we’d need to purchase OTC. How does that make sense at all?! Man, our system is SO jacked up.
Here’s the list of things that we can buy without a prescription, and maybe I should look into a blood pressure monitor.
Cold and Hot Packs
Blood pressure monitor
Birth control
Band aids and bandages
Compression socks
Ear plugs
Epsom salts
First aid kits and first aid supplies
Mouth guard
Nasal strips
Thermometer
Vaporizer/humidifier
That’s it. Well, there were a few things that weren’t applicable to our family, but for anything we could use, it’s limited to the above list.
Thanks, but no thanks, you can keep it. That was the alst straw for me. I’ll pay the taxes if it means I don’t have to deal with Payflex, these forms, or anything to do with that cockamamie system. We still use the Dependent Spending Account (have you seen our daycare bill?) and it works great, but no more FSA for me next year.
Are all FSA’s this restrictive? Did we luck out the last 8 years with a great plan at our last company? Does anyone else think their FSA blows too?
Let me know, because misery loves company.
The Green Swan
November 14, 2016OMG that’s ridiculous! My company doesn’t offer free money in our FSA so we’ve elected for the HSA tied to a high deductible health plan and we purposely spend out of pocket on healthcare to retain and build the tax advantages the account offers. But I know others who’ve used the HSA for refunds and it isn’t a difficult process by any means. That’s a shame!
Mr SSC
November 14, 2016We’re not putting anything in our FSA this year. It’s just ridiculous the hoops we’ve had to go through. Not worth the pre-tax savings.
I’ve heard the HSA reimbursements are easier, but we wouldn’t have come out ahead using that plan over the last 2 years or so. At least we have healthcare, so, not too much to complain about, all things considered. 🙂
Steve
October 16, 2020Same here. I couldn’t figure out why they were making it so darn hard, questioning every expense. My thought was “hey this charge came from a dentist office, what more do you need?”. Then I found out that the FSA provider and the employer get a cut of whatever money is left over. In other words, they have a financial incentive to make it difficult on you.
GL
November 14, 2016It’s not just your company’s plan, the government changed all FSA’s rules of coverage 2 years ago. You can no longer buy OTC meds without a prescription. We used to have a sweet deal where my company put in $3000 for everyone as a perk, but they can’t do that anymore either, and there are limits on the amount you can contribute. We can use the previous year’s leftover funds until March 15th of the following year, but otherwise it has become so restricted we prefer not to utilize it either. At least we only have to submit one form to get reimbursed, your process sounds much more painful! Our plan does allow us to buy sunscreen with a certain high SPF over the counter, so we take advantage of that!
Mr SSC
November 14, 2016Yeah, I guess our former mega corp hadn’t implemented them, because last December we spent the remaining $60 or so on allergy meds, ibuprofen, and whatnot. I guess my current company just follows those new rules way more strictly than the last company. Regardless, it was way easier just using a debit card style system, especially for co-pays. Just swipe and done. ugh… Thanks for the comment!
Edifi
November 14, 2016Try not to fall into tr emotional trap on this. Do what you need to do to not lose it this year, learn quickly, move on quickly. OTC coverage changed under Obama for a lot of spending rules. If you haven’t this year, get everyone their free physicals and ask the doctor for some aspirin (or whatever) scripts. As long as it’s not some corporate clinic (ahem, Kelsey Seybold), private practices will usually work with you. I’m surprised suntan lotion and contact solution isn’t covered.
Mr SSC
November 14, 2016Good to know about the corporate clinics and the ACA changes. Even last December we were able to get that stuff OTC on the spending card, but that was also a different company so they may have been more liberal with their allowances.
Just last night, Mrs. SSC was looking for her earplugs, and I said, you can always get a new pair, because they’re covered. She was like, “really, ear plugs?” Go figure…
I’ll double check for sunscreen, because we use that year round, and contact solution was covered, but we don’t use contacts… 🙁 oh wait, that should be yeah, no contacts! 🙂
Mrs. Picky Pincher
November 14, 2016Ouch!! Mr. Picky Pincher’s plan is pretty restrictive, so we haven’t opted into it either. That sucks because it’s basically money jail! We’ve just resigned to the fact that we need to be our own bank. I’m sure there are wonderful FSAs out there to cut down on your tax burden, but we just don’t have that available. Better to have cash saved up for a sickness instead of putting it on credit I suppose!
Mr. SSC
November 15, 2016Yeah, that’s how it felt, money jail! I was actually thinking about taking a pic with some money in a Lego jail instead of the Alligator one to show that same thing.
It did make me realize how good our old company was with their FSA policy. I won’t deal with it next year and just pay for it myself.
earlyretirementnow
November 14, 2016The FSA has lost most of its appeal. We can still use it for out-of-pocket dental expenses, so we dedicate a few hundred $ to the FSA, but that’s it. For medical expenses pretty much everything has to go through the HSA now.
At least our FSA still allows to roll over $500 to the next year.
Mr. SSC
November 15, 2016Yep, I found that out this year. Mrs. SSC still was able to use all of her FSA easily before she quit, and when I looked into mine and found out how restrictive it is, thanks, but I’ll pay the taxes and not deal with them.
And no rollover here either. Oh well.
Miss Mazuma
November 14, 2016Terrible! I did my FSA once and realized I never go to the doctor so I couldn’t get the money back. I started booking all sorts of random appts just to have spending spree so the money wouldn’t be wasted! Last year I switched to our HSA which sounds a lot like your first employers FSA (minus the obvious differences). We have a debit card and can use it when we pick up prescriptions or for any other health related purchases OTC. The upside of the HSA being able to invest that money is super but one I haven’t yet taken advantage of…next year! Sorry you have a crappy plan… with both of you having health insurance, would it make sense for one of you yo do an HSA if it is offered or would you not qualify?
Mr. SSC
November 15, 2016The HSA definitely has some good options to it, and if I was single, I’d go down that road for sure. With the kids and the unpredictability of their doctor visits, plus the random “older age” mishaps Mrs. SSC and I have had over the last few years we would be in the hole had we used the HSA. We qualify, but when we run the numbers based on past years spending, it just works out to be more expensive.
I didn’t realize her company was still so free with their FSA rules and mine wasn’t until this year. Since she still used hers this year no problem before she quit, it was a shock to see how different the 2 companies polcies were.
Ms. Montana
November 14, 2016Sometimes things seem like they should be an obvious win, and instead are just horrible. My last employer finally set up a 401k program. They were going to match 3%, so obvious win (insert all the talk about free money, you would be stupid not to, yada yada) It was a nightmare. The company only pushed front load options (I knew I was leaving in 6 months), so I ended up option for a money market account which had no load. They didn’t mention they would take a $40 a year fee! So in the end, on my $600 in cash I paid 3 $40 fees. Then when I rolled it over they charged me $100 to close the account! Ugh. Never ever ever again. That was the worst “free” money I ever invested. Plus the advisor suggested I was lying about the net worth question. I would never want to throw that company under the bus (cough, Edward Jones) but it was not a great experience.
Elephant Eater
November 14, 2016We had a very similar experience the first year we maxed a 401k when we knew Mrs EE would be leaving her job and then got hit with all kinds of fees to roll over the money from another firm that will also remain nameless but it begins with a V and ends with oya.
We also had a bad experience with a FSA. Both situations I think show the importance of getting the biggest things right and keeping everything else simple rather than worrying about every dollar.
Mr. SSC
November 15, 2016Oh man, my company just switched to that bright Orange broker. It’s a shame because they were in vanguard. I still can choose Vanguard stocks and the Orange options are about the same for account fees, but I didn’t look into any rollover fees or other things like that for obvious reasons. Good to know ahead of time.
I’d heard that our RSU’s and other incentives that are kept with a different broker (cough, M. Stanley) are horrible for fees and to get them out of there before you do anything with them due to the fees. Stupid account fees. 🙂
Mr. SSC
November 15, 2016That sounds horrible. Seriously, implying you’re lying about your net worth, wow. Just wow…
Like your experience, I found this year my FSA isn’t worth it. Thanks, but I’ll just do what I want with my money instead. 🙂
Jacq
November 14, 2016HSA for me, because I don’t have a lot of medical expenses I can’t pay out of pocket, and if I do, I’ve got the HSA to back me up. MadFientist’s HSA post convinced me it’s the way to go. My company also contributes to the HSA, so that is a bonus. 🙂
Mr. SSC
November 15, 2016Yeah, my company doesn’t contribute to our HSA, and even though we can pay exenses out of pocket, we would have maxed out our deductible the last 2 years if we’d gone that route. Since that’s about twice what we pay now, we just stuck with this plan. I only put $500 into the FSA for presriptions and what not, so it’s not a lot of money, but it’s still kind of a lot of money.
Since Mrs. SSC was able to use hers so easily this year before she quit in june, I didn’t realize the restrictions could vary so dramatically between her company and mine. Lesson learned.
Go Finance Yourself!
November 14, 2016Yeah, as others have mentioned, that’s the government changing policies, not your plan. Some plans don’t check nearly as closely as others. At my old job, I had a debit card to access my HSA account (which was a sweet setup as my company matched contributions dollar for dollar up to $1200 for an individual). I didn’t use it for anything unapproved, but they never would have known as they never requested receipts. The only risk, if you wanted to use it for unapproved items such as OTC drugs, was if you got audited and had to prove the validity of the expenses.
My new job has a plan where you have to submit an explanation of benefit form to get reimbursed. I had some physical therapy expenses last year which is an approved expense, but because I didn’t go through insurance (was actually cheaper as they gave me a discount) I couldn’t submit the expenses for reimbursement. Dumb!
Mr. SSC
November 15, 2016Yep, that’s too bad, because they used to be so nice. 🙂
That bites for the PT reimbursement. I’m going through that now and will ask for a detailed receipt for my visits there so I can submit them all en masse.
Cindy
November 15, 2016My plan works the same way; No reimbursement unless you run it through insurance and submit the explanation of benefits. The person who manages our plan is afraid she’ll reimburse someone for their cost, and then they’ll turn around and submit it to insurance, and get “double reimbursed”. I know of at least one person on our plan who goes to a chiropractor that is out-of-network, who charges less than the copay would be going through the insurance. But, since it doesn’t go through insurance, there’s no explanation of benefits, so our plan manager won’t reimburse the cost. Other people have also had issues with surgeries and things, when the hospital requires a set payment upfront, but the insurance company may take months to process the claim. They’re stuck waiting to get reimbursed, sometimes to the tune of several thousands of dollars!
Mr SSC
November 16, 2016That sounds ridiculously horrible. I’d still be fine going the route of cheaper if you don’t go through insurance even knowing it won’t get reimbursed. But yeah that bites.
Mr. PIE
November 14, 2016We don’t subscribe to the FSA for a number of the reasons related to inflexibility. We of course use the HSA heavily through Mrs. PIE company healthcare plan. And as for the dependent care account – yikes. Even after the trauma of daycare costs, we now have after-school care and summer camps – mind boggling numbers when all is totaled up..
On your list of FSA things you can buy without a prescription, there may be some chinks of light:
1. Compression socks will help with heavy stomping of feet at the latest policy changes in govt.
2. Ear plugs will drown out the political blustering and noise
3. Epsom salts will allow you to bathe in the glory that is a revised, shiny and budget friendly Obamacare. Tongue firmly in cheek here…..
Here’s to hoping the chink of light at the end of the tunnel is not a freight train thundering right at us….
Mr. SSC
November 15, 2016Those kid costs are truly mind boggling. Solidarity! lol
Currently it sounds like my HSA sucks. After reading about everyone else getting amtches and the like I reviewed it one last time yesterday to double check iw asn’t missing out on anything before elections ended. Noe, no match, no incentive to use HSA over the regular plans. Besides the obvious “let it grow” aspect.
Since we’ve run our numbers the last few years against an HSA cost, we’re still in the black with this plan versus an HSA. It would’ve cost double our current plan, due to deductibles and what not. Maybe that’s jsut because Mrs. SSC broke her foot (stress fracture) and I partially tore my Achilles tendon (yipe!) and there’s been more than usual stuff on our end. Even when it’s not us the kids have eaten up a lot of medical expense.
I like your list of FSA things I can get to help ease into our new administration. I checked and ic an get sunscreen, which I may need to reduce sunburn from basking in the glow of our new glorious leader… (why is there no sarcastic font yet?) 🙂
Mrs. BITA
November 14, 2016We’ve been lucky so far – we have the card and just swipe and merrily go about our business. Your post made me appreciate what I’ve been taking for granted. I wonder if that will change for us next year. We’ve signed up for an HSA plus a “limited use FSA” for next year. We only put $500 in the limited use FSA and now I’m hoping against hope that it is run the same way as our previous full-fledged FSA is.
Mr. SSC
November 15, 2016My post even made me appreciate what I had taken for granted, hahahaha. Sigh…
It sounds like the HSA is a lot easier to use, I just got caught off guard with my little amount in our FSA. Good luck with your LU FSA. 🙂
Matt
November 15, 2016I have both an HSA and an FSA as well–characterized as an “HSA compatible FSA.” This is limited use, but only until the HSA deductible is met. Once the HSA deductible is met, there is a form to submit attesting to that (because they are different companies, and do not communicate directly) and the FSA is then released for all expenses.
It’s often overlooked when discussing the two account types (is it an optional feature?) but very good if you are expecting significant procedures. We first looked into it when my wife was pregnant.
Mr SSC
November 16, 2016Thanks for the insight on that!
Jason
November 14, 2016Let me guess you guys have ASIFlex accounts? We have the same and no less than 4 occasions I have had to send them money to have my cards reinstated because of their cumbersome policies.
Mr. SSC
November 15, 2016No, Payflex, but I’m guessing they’re jsut as fun to deal with. 🙂 Cumbersome doesn’t begin to cover it. Yet, for the dependent care reimbursement, we get to mid-year, fill out one form, have daycare sign off and get checks bi-weekly reimbursing us. If only it was all that easy.
Mrs. Need2save
November 14, 2016Everyone wants to hate on the FSA administrators for doing what’s required of them by the law. As others have mentioned, OTC drugstore purchases are no longer allowed without a prescription. Of course, there are good ones and pretty bad ones – but it sounds like your first experience with FSA claims was overly lenient. They probably just hadn’t been hit with a significant audit yet. The larger, national administrators who have been audited by multiple firms are forced to make sure that every single cent is used for an eligible expense – hence the rules about your name, their name, and specifics about what the expenses are for to separate eligible from ineligible purchases.
I talk to many employees who just don’t want to bother with the hassle of submitting receipts. If you just know what to ask for before you leave the doctor’s office, optometrist, or pharmacy – and submit it in a timely fashion, you can eliminate a lot of headaches. The higher your income (and tax bracket) the more ‘worth it’ the hassle becomes.
Then again – with the HSA option…it’s between you and the IRS and your HSA provider won’t ask for the receipt. You just need it in case the IRS every comes calling. Another reason why the HSA is superior to the FSA if given the choice.
Mr SSC
November 15, 2016It’s not the administrators, it’s the fact I got caught short assuming the 2 companies policies were similar.Since Mrs. SSC had money in hers that we used earlier this year, and it was easy, and no problem like it always has been with that company. When she quit, and we were using mine (different company) it was like trying to get money out of money jail. No cards, all submitted forms, all detailed receipts, etc…
Like you point out, it’s probably pretty easy if you just ask for the right forms while at the dr.’s office, I’ve just never had to do that yet. I’m with those employees, for the amount saved on $500, I’ll just pay it and not deal with the system. For me, it’s definitely worth it.
As I’ve mentioned in other comments, when we have looked at the past 3 years of medical expenses the HSA hasn’t been the best option for us, so no HSA here. Especially with no company match or incentive from them for us to use it.
I’d be surprised if our last company hasn’t been audited yet, because they’re pretty, pretty, pretty, big. That said, yes, it sounds like for the 9 years we were with them, even up to this year in June for Mrs. SSC their FSA policies were lax or illegal. It made me appreciate how easy they made it though, lol.
Matt
November 15, 2016There is another aspect to consider why an FSA administrator may be good or bad. (from a paperwork standpoint) All that money that you may forfeit at the end of the year…is theirs to keep. So, an FSA administrator may bid low to your company for its administration fee, and understand that by their process, they have fewer redemptions, and reap the benefits.
It sounds like a conspiracy theory stated outright like that, but it is a potential conflict of interest that should be considered, which an HSA administrator does not have.
Mr SSC
November 15, 2016Oh no, when I was on the phone trying to figure out what was and wasn’t eligible, the first question I had was, “Wait, so who keeps the money if we don’t get it approved for use?” No conspiracy, just business. 🙂
Cindy
November 15, 2016I’ve been considering whether or not my FSA is worth continuing to contribute to. One year I had an accident, and it was actually worth it, but most years it’s not. I used to contribute $600/year, but I’ve dropped it down to $300.
But more than that, I feel like it’s a complete invasion of my privacy. I work at a small company, and even though it’s an AFLAC plan, my boss manages everything. Meaning she gets the receipts, and writes all the checks. No debit-style cards, reimbursements only. NOTHING over the counter is covered, and she’ll only approve things that either have an Explanation of Benefits from our insurance carrier (so she can see what insurance is covering) or a prescription receipt. Which makes for even more of a delay, since you have to wait for the claim to be run through insurance before being able to submit it.
I find myself not turning in things for claims, just because I don’t want someone I work with knowing why I went to the doctor, or what tests I had run, or what I had to get a prescription for. Then I end up buying things I’d typically not spend money on, just so I’m using the money. Last year I bought two pairs of prescription glasses, and a pair of prescription sunglasses, just so I’d drop below the maximum to roll into the new year. Sure, the money was tax-free, but is it saving anything if you’re buying things you normally wouldn’t?
Mr SSC
November 16, 2016I agree, that sounds like a total invasion of privacy. I’d skip the FSA just to avoid what you mentioned; someone knowing why I went to the dr. what tests got done, what prescriptions I’m taking. Thanks, but my privacy is worth more than the tax savings.
It bites that the system changed so much to make this not worth using in some instances.
DC @ Young Adult Money
November 17, 2016When you compare an HSA side-by-side to an FSA it’s no competition: HSA blows the FSA out of the water! I thankfully haven’t had to deal with an FSA in the past and love my HSA. I think HSAs are such a great tax advantage and really do motivate (many) people to save for medical costs.
Mr SSC
November 18, 2016I get the appeal of an HSA, and our FSA spending has been limited to $500 or less each year, so it’s not too big of a deal, I had just never dealt with those crazy restrictions yet.
In terms of $ saved, my family medical plan has saved us over $2500/yr the last 2 years vs if we had used an HSA. Sure, we could ahve put the money into savings tax free and let it grow if we’d wanted to invest more. Since my company doesn’t match anything for the HSA and the deductibles are pretty high for the family plan, we have stuck with the regular family plan and just put any extra savings into investments.
If I was single and childless, or if my company wanted to match any amount of money towards my HSA I’d use it. Even this year, for per person deductible, it would be almost $50/mo extra and then a really high family deductible. I jsut haven’t gotten the numbers work out for us to switch to that plan yet.
Matt
November 18, 2016Starting next year, a HDHP is the only available option at my company. While I have used it for a while, and am choosing to build a balance in my HSA, it is not the cheapest option in the short term, because we do spend to the full deductible, and even spend to the out-of-pocket max. Rather, it is useful as a tax hedge. To add to Mr. SSC’s conditions: if you are young, single, and childless, then this is an amazing savings opportunity for you. (my company does not strictly match, but does make contributions to the HSA. So, there’s that)
I suppose what I am experiencing now is similar to a person who had a 401(k) introduced mid-career: it’s OK, but it’s a great idea if you have your full career ahead of you to take advantage of the long time for compounding.
Mr SSC
November 18, 2016Man, I heard that mine and Mrs. SSC’s last company pretty much did the same thing this year. The other low deductible plan is available, but sucks ass now and is way more expensive than the HDHP even on a short term basis. However, they are contributing and trying to incentivize people to switch, so good for them in that regard.
Exactly, as far as putting in terms of a 401k mid-career, I like that analogy. Yeah, it’s fine for the tax hedge and sure it could get compounded over 10 years if we also chose to stash as much in it as we could. I think we would’ve hit the deductibles and OOP match each year which was well above what we ultimately paid for healthcare these last 2 years.
Great analogy though, I like it!
Laurie @thefrugalfarmer
November 19, 2016It’s almost like FSA prison with that plan!! Definitely dump that thing. We don’t do the FSA but Rick’s company has a pretty generous HSA. The thing I like about HSAs is that you can roll the money over, so we’re using it as a retirement account.
Mr SSC
November 21, 2016Well, I like the plan’s other benefits, it’s just the FSA part of it is horrid. No elective $$ put into it for next year, but otherwise, I really like every other aspect. At least the alst 2 years it’s been significantly cheaper than an HSA, even looking at it as a retirement healthcare account. Since hopefully, we’d only be adding to it for another 2-3 years, I’ll just stick to this family plan. Lesson learned on not putting money into the FSA though. Eesh…
Mustard Seed Money
November 20, 2016I wish I had something interesting to put in here but I’ve actually never used a FSA even though they are available at work. I’ve heard that they are super easy to use but since I barely go to the doc I thought it would be a potential waste of money. Now that I’m getting older it is definitely something that I need to look into. Thanks for the reminder!!!
Mr SSC
November 21, 2016It is super easy to use, provided you ask for the right receipt/document when going to the doc. I’ve just never experienced that level of documentation until the 2nd half of this year. Oh well…
Good luck figuring out what works best for you!
Liz@ChiefMomOfficer
November 29, 2016I use an FSA but my company makes it easy to use. Claims that have an outstanding amount get automatically paid-I don’t even need to submit a receipt or swipe a card. The user-friendliness of an FSA makes a huge difference in how much you want to use it.
Unfortunately the change to require prescriptions for over the counter drugs was a change in the law, not specific to your company. If your old company didn’t require a prescription after 2010 they were not doing it correctly. You can learn more about the change in law at the IRS site https://www.irs.gov/uac/affordable-care-act-questions-and-answers-on-over-the-counter-medicines-and-drugs.
Mr SSC
December 1, 2016Ugh, I agree with that, user friendliness goes a long way. However, knowing I need 4 forms of receipts, it has been easy just asking at the dr and physical therapists and getting those submitted timely. I still elected no money in it for next year though. They did have about $280 of stuff that got rolled into it from our medical submittals. I just had to click, “pay”, “medical expense”, “yes I’m sure”, “Yes, I’m Really sure”, and then “submit”. So, it was fairly easy.
Thanks for the link!
Mrs. Groovy
December 2, 2016Sunscreen is covered. So are extra eyeglasses. The OTC situation stinks. When the rule first changed I got my doctor to write me some prescriptions for OTC drugs. But really- do you want to waste the whole five minutes of time they have to talk with you on that?
As per Cindy’s comment above – her office situation sounds potentially illegal to me. It may be within the law for her employer to refuse to hire a third party to administer their FSA. But since the person handling the program is her boss and has direct control over her position, there’s probably a HIPPA rule against it. I’d look into blowing the whistle on that. It can probably be done anonymously.
Nupe
March 15, 2018I don’t get the point of having to forfeit the money in an FSA if it isn’t all used in the plan year. Why not just allow it to rollover without being able to contribute anymore until the following calendar year? I mean, who has a magic health genie in their pocket to be able to predict these things? I had maxed out my FSA because for a medical event that I had to prepay several thousand dollars just to get it scheduled. To procedure got pushed back beyond the grace period and now I’m struggling trying to figure out how to spend the money. This was the one and only time I did this because I knew I had to have to procedure. It’s ridiculous that the IRS/Obama administration left the forfeiture rule in. It makes no sense and definitely doesn’t benefit the employee/tax payer. I would just love to know the reasoning behind this and why they made it more restrictive as oppose to less restrictive. Wasn’t the thought behind it to help make healthcare costs more affordable??? I’m really dumbfounded.
John W.
April 28, 2018We have an HSA and a High Deductible plan. It is great to see the amount in the HSA grow year after year and be tax-deductible. The great thing is you can use the HSA you saved tax-free earlier in life in your retirement to cover any gaps in Medicare, or spend it on a new car.
Jmbrooks
June 27, 2018I just tried to use Health Equity out of UT. They denied my claim for 890 dollars because in ADDITION to the bill it had an estimate for all the procedures. Even when the receipt that frigging says receipt on it with the amount paid from my debit card. Now they have to “start the process over”. I hope b Obama burns in hell
Rebekkah
March 21, 2019First Financial Group of America is just as bad except that it does give a card to use. However, almost every doctor or dentist charge gets denied until a receipt that is good enough for them is sent in. And they refuse to tell you why the receipt is not eligible until they suspend your card. Then all of a sudden they will start telling you what needs to be added to the receipt in order to make it eligible. If the doctors refuse to give receipts that are good enough to work then it takes multiple phone calls of incompetent people to tell you the wrong way to get the card unsuspended before contacting someone that has been trained enough to tell you how to get the account reactivated after a week.
Zoltan
April 15, 2020Goes to show means testing NEVER works. Its just added baggage. Some people will abuse the system, but 99% won’t. The means tested system is just a mechanism by which corporations can abuse the system by hoping you’ll be frustrated so they get the money you don’t spend for free. If they are going to means test, the money should never be lost. The fact they are going both, just means its all a scam, especially because medical events are so random anyways. Medicare for all is really the only system to flush the grifters who run the system and come up with these crazy plans out.
Jolee
March 5, 2021We have FSA which I contribute to monthly and the card is useless might as well not have a card. I have $2500 sitting there that I cannot use. Because I have to pay out of pocket before they give me the money to pay the doctor. The whole reason I did this was so I would have money to pay the doctor. The doctors want their money up front. We have a PPO and that can expensive quick. I would rather put the same amount into an account of my own to draw from when I need it and not wait for the middle man to let my money go. The only thing I can use the card for is my prescriptions. I would advise not doing doing this. Also if you do not use it you lose it! They get to take your hard earned money and keep it.
Nicole
July 7, 2021OMG the FSA my company works with is terrible! They deny every claim constantly, we need a letter of medical necessity for every over-the-counter purchase, even after they said COVID rules would mean no longer submitting proof of need. They deny every dental claim I put in stating that the billing from my dentist’s office and the statement from my insurance is not enough proof to process the claim and they’ve done the same with my chiropractor’s office (I need a referral from a medical doctor with diagnosis saying I need to see a chiropractor, a letter of necessity from the chiropractor, and a treatment plan. This needs to be submitted yearly in order for them to approve any claim I submit), co-pays that are odd amounts are always immediately denied too. If I used the debit card associated with my FSA account for anything they’ve denied, they suspend my account until I’ve issued them a re-payment via a certified or cashier’s check. They also keep the money you’ve put in the account if you don’t use it. Which due to their insane restrictions, you can almost never use the funds available.
The account rep for the FSA is also completely useless and unhelpful. Anytime I run into an issue and have to contact them, they are never able to explain to me why something was denied or why the documents I’ve submitted aren’t enough “proof of need”
I will not be re-enrolling in this account with my work.