Medical flex account blues....I have them today....

[Skidmore]

Okay, we get a medical flex account from my job. My husband carries our health insurance through his. We've got a super plan with low co-pays this year, unlike in years past. Well, I've been out trying to do some spenddown on my flex plan--vision check (not covered by the health insurance), new lenses for my current glasses, new back up pair, and new lenses for my current sunglasses. All of these are costly, because, per my eye doctor, I have an interesting pair of eyes.

Back to the flex plan. This year I have way more money than I knew I'd ever use, but if I didn't let it sit at that level, my take home pay would be several hundred dollars less. Don't get that concept, because the flex account is paid out separately and doesn't ever appear to affect my take home pay even the year I had to spend the maximum allotment. This year, I was ill and required hospitalization, followup treatments, and many lab expenses, but have only had to pay about $200 out of pocket on this new health insurance plan. Since the contract I'm working on may not be refunded at the end of January, I may very well be without employment so new glasses and a vision check seem to be a prudent way to spend down the flex account. What I don't understand is why they don't develop these medical flex accounts say with an initial base allotment per individual or family (fluctuating as your family configuration changes) and let you use what you need for the year, with the incentive to roll over to the next year any left over dollars in the account with the employer only replacing the unused portion. Rather, they zero out the account and start again new at the beginning of the year. It seems to me it would be more cost effective to just replace the portion used. I think if people were assured that the money would roll over, they wouldn't feel the need to spend down at the end of the year.

This thing is like a moving target sometimes, and I don't understand why it impacts my takehome pay, or why responsible use of health care services does not appear to be rewarded. Am I missing something.

[electropop]

1. The FSA is another Puke ripoff to take away our money.

What a freakin' joke. If you're going to make medical expenses deductible, just make them deductible. Why the rigamarole? Because somebody gets to keep the money you are forced to forfeit if you miscalculate (or your circumstances change).

[ewagner]

2. Some companies

are offering FSAs that can be kept year after year and accumulate funds PLUS interest.

In the interest of full disclosure, I know this because I represent one of them....

The bad part is you have to have the Medical Plan (a qualified high-deductible plan) AND the FSA with the same company. This wouldn't work out for you.

e

[REACTIVATED IN CT]

4. Actually, you are talking about an HSA

Different animal, different IRS Code Section, different rules

[ewagner]

10. Yes, you're right

Had to go back and look....

thanks

[ihaveaquestion]

3. If you need to spend down that account...

Look at the allowed expenses and you may find some really nice things you can do for yourself.

Try theraputic massage, all kinds of supplements, chiropractic care, dental work, etc.

I had to do this last year, so I stocked up on lots of vitamins and had my teeth professionally whitened.

:7

[REACTIVATED IN CT]

5. The IRS now allows many

over the counter items to be run thru an FSA. Time to replenish your medicine cabinet ! As long as the item treats a condition (antacid, cough medicine, pain reliever) it is OK. First aid supplies are also allowed.

The gummint was considering allowing FSA funds to be rolled over from year to year, but that was not put into effect. However, your Plan sponsor can amend the Plan to add a 2.5 months carryover period - expenses incurred in 1st 2 months of following year qualify for reimbursement.

[dflprincess]

6. You can use it for OTC stuff like asprin and contact lens solution

you can stock up on some of that stuff.

[REACTIVATED IN CT]

7. It impacts your take home pay because

the amount you elect is taken out pre-tax - no Federal, state, Soc Sec or Medicare tax is withheld on that amount

[Coexist]

8. I hate our FSA -

it is your money and they treat you like a criminal every time you try to send in a claim.

Once they actually denied it when I sent it in because there was no EOB, so I resubmitted it with the EOB, and it was denied because it was a duplicate claim.

I would suggest you buy lots and lots of first aid supplies to deplete your account.

[RB TexLa]

9. employers exposure

let you use what you need for the year, with the incentive to roll over to the next year any left over dollars in the account




On the un reimbursed medical side of FSA's that is to hedge the employers exposure. Such as an employee in the first month of the plan year with say $200 a month racks up the max ($2400) in eligible expenses, the employer pays the $2400 and the expectation is the employee will then have the $2200 taken out of her or his check over the next 11 months. Now of course there are employees that leave, after such an event, and this is what the other employees $50 or $200 or $75 that they weren't able to spend go to possibility make up. I always tell everyone to make their best guess and then cut that amount by 20% or so. You always want to come up short on it.

[REACTIVATED IN CT]

14. Correct - the employer does have exposure

Because there is risk involved that participating employees will leave before their contributions equal what they have taken out.

FSA's and HSA's are not rip offs. They are an alternate way to finance health care. I don't think our current healthcare system is the best - but until it is changed, these plans are good tools if used properly.

Any of you have a kid that needs braces ? No dental insurance will cover that in full. You are stuck paying 3 -5 grand. You can save from 22 to 35% of that by running it thru an FSA. And you can put the claim in early in the year, get the full amount from the plan to pay the orthodontist and thereby use the FSA to finance the treatment interest-free.

We're offering HSA's for the first time this year - they look like they may be of value to some, esp. the self employed who pay the full cost of their health insurance. I'm lucky that my employer pays for mine in full, so an HSA would not appeal to me at this point.

[nvliberal]

11. FSAs, MSAs, 401(k)s, and all of the rest are scams.

They are very, very clever schemes in order for companies to shift costs from themselves to their employees, all the while the government gives tax incentives for employees to basically screw themselves.

The next thing the fascists want to do is offer "retraining" accounts or whatever the hell they're called in order to get out of ever putting in federal unemployment insurance again.

These accounts would be basically worthless, for "retraining" costs far more than the miserly accounts, and one can't live on those meager savings while getting retrained for McDonald's or Wal-Mart.

If a company offers a "great deal," you can bet it's doing so to save money.

[madrchsod]

12. i have the same thing offered where i work

and it`s a complete rip off..they even told us how to ripp off the plan to get our money. no one bought the bullshit last year but there`s another such plan this year. my insurance costss me a ton of money but i pay only 25 per visit and have less than a thousand deduct and at my age and income it`s the best plan i can get
medical plans that are structured like a 401k is the plan that makes sense but few companies want that..why? like the plan we are offered, if you don`t spend it you lose any money left at the end of the year..yup it`s another revenue source for the company.

[Greyhound]

13. Medical accounts are just another givaway for the insurance industry n/t