Flexible Spending Accounts

[RockaFowler]

Has anyone heard this??

As Congress considers how to best reform health care, they are faced with having to find a way to cover the estimated $1-1.5 trillion cost for expanding health care coverage to the many uninsured. With this challenge, comes a threat to flexible spending accounts (FSAs).

Several weeks ago, the Senate Finance Committee considered a proposal to eliminate FSAs. While abolishing FSAs would only generate a small portion of the costs of health care reform ($68 billion over ten years), it’s clear that every dollar counts and every option to cover the costs is being considered.

With so much at stake, WageWorks has joined with others to actively lobby Congress and the Obama Administration to preserve FSAs. We have argued that at a time when Congress is trying to lower health care costs and provide quality, affordable care for all Americans, it should not do so at the expense of hardworking Americans who rely on FSAs to manage their health care costs.

Especially powerful have been the personal stories we’ve shared in the meetings with members of Congress and their staffs that illustrate how FSAs are used by individuals and families battling chronic conditions that require ongoing care and medical supplies.

While we have made great strides, we can’t do it alone and welcome your participation in our advocacy efforts.

Save Flexible Spending Plans, a new organization dedicated to preserving FSAs, has just launched www.savemyflexplan.org. We encourage you visit the Web site, use the online tools to contact your members of Congress, join the Facebook and Twitter pages and help raise awareness about the importance of protecting FSAs.

With your help, we can protect FSAs from becoming the unintended victim of health care reform.

A friend of mine just sent it to me and I am confused. Is there a provision to do away with the FSA's?? how would that save money for the government?? I mean I put the money into an account. Is it because it is pre-tax??

[dugaresa]

1. FSA's are a tax saving for people which means reduction in tax revenue for govt.

[JuniperLea]

2. It cuts tax revenue...

30% or so on the money you put directly into the account, depending on where your tax bracket falls.

[damntexdem]

11. But what happens to the unused money, put away but not spent?

Does that end up with the government? If so, how much does that offset the tax revenues lost?

[JuniperLea]

13. First, it's really stupid NOT to keep track of such things...

There are tons of over-the-counter items that can be charged to an FSA, as well as eyewear. I always stock my medicine cabinet, or get a new pair of sunglasses or something to use up MY money. This year I cut my contributions to the account so there wouldn't be so much left over to worry about. Most plans allow you to check balances online, and the IRS has eligibility lists posted as well. There is just no excuse, short of I'm a stupid idiot, for having money left in the account.

Stupid, stupid, stupid. And not a good reason to argue against these plans... not even close to a good reason.

As I recall, when I set up the FSA account for a former employer, the unused portion of the plan goes back to the employer's account, not the government. That is stupid too. People should get it back... and be held accountable for paying the income taxes on the unused funds.

[guitar man]

22. I was told

that any unused money in my FSA went to the insurance company :(

[JuniperLea]

23. Shame on them...

That sounds like a weird scare tactic. I'm the office manager here, the only benefits or HR type in the west coast office. This is my fifth year having an FSA... and not one thin dime of mine has gone back to anyone. The insurance agent told me it goes to the company if you don't use it, so I made sure I knew how to use it all up! So weird... disinformation sucks, doesn't it? The IRS website has most of what you need to know.

[guitar man]

24. thanks for the info

Open enrollment is coming up again and if they spread that disinformation again I'm going to call them out on it.

[Merlot]

3. Are the FSA's those accounts where your medical money is saved tax free?

if so, that is a repub plan to begin with and did nothing to lower the cost of healtcare. It just didn't let the gov't tax money put into a savings account to be used for medical bills.

[rurallib]

6. like everybody had an extra $5 large laying around.

Since the emancipation proclamation, have republicans done anything that doesn't put money in their own pocket?

[JuniperLea]

14. Sure it did...

You save 30% on copays, deductables, and on any over-the-counter medicines, bandaids, etc. That's not shabby.

[ColbertWatcher]

4. FSAs are the "nice" gamble in the insurance carnival. n/t

[JuniperLea]

16. Only if you are gambling...

I track mine... I used every last dime every single year. It's not all that hard to do.

[ColbertWatcher]

20. If you're relatively healthy.

FSAs don't work much better than regular insurance when your bills exceed what you've paid in.

[JuniperLea]

21. They are only meant to supplement insurance

I don't get what the big deal is. FSA's save you 30% on all copays, you can track them hella easy, and there's no need to lose any of the money.

[RUMMYisFROSTED]

5. Over 10 years!

[DJ13]

7. GOP mumbo jumbo

Medical savings accounts have been a GOP goal for decades.

They usually trot it out as a deflection when ever the rising costs of health care are under the microscope.

[superduperfarleft]

8. As always, it's important to consider who actually runs this "grass-roots" organization.

Whois shows it registered to Shanna Duncan at Hyde Park Communications. Here's her profile, a who's who of pharmaceutical companies.

http://www.hydeparkcomm.com/our-team/shanna-duncan/

Grass-roots my ass.

As far as FSAs go, I can't see it being a huge issue for most people, as you can deduct medical expenses from your taxes anyway if they make up 7% or more of your income. The biggest impact will be on the companies that administer FSAs. So what you basically have is people just trying to save their jobs, regardless of the impact it has on the rest of us.

edit: Her campaign contributions seem to lean towards Democrats. And her twitter shows that she's kind of a star-fucker.

[RockaFowler]

9. Thanks for the info

I love getting info from here

[JuniperLea]

15. "if they make up 7% or more of your income"

There are a lot of us who are relatively healthy, and don't use near 7% of our income. For us, an FSA saves 30% (or more, depending on your bracket) on all out0of-pocket copays, deductibles, and non-covered medical expenses.

[superduperfarleft]

18. Point taken.

I'm pretty agnostic on the whole issue, but as someone who works in insurance, most of the "alerts" I've seen about this come from companies that administer FSAs, not the "grass-roots."

[JuniperLea]

19. They are making a buck off the service...

Everyone making a buck is trying to protect their future bucks right now.

The thing is, if the insurance companies go buh bye, so do the FSA administrators. Who would need an FSA if they had decent health coverage that didn't charge an arm and a leg in copays and deductibles?

:shrug:

It all goes back to the insurance companies.

[aikoaiko]

10. That would suck. I put 600 into my flex spending every month.

[aikoaiko]

12. There is another option too... its like FSA but it rolls over. ..

...and you could only spend money that had already acrued.

I think the acronym was HMA.

[mmonk]

17. Government loses tax revenue on them.

It's one of those so called "consumer friendly" plans where the insurance companies shift the medical costs on you while still collecting premiums but at a lower monthly cost to you (except your deductable is now large).

Wendell Potter speaks about it here:

http://www.youtube.com/watch?v=0-M10jDkmm0

http://www.youtube.com/watch?v=Mv1FwOCNoZ8

The government isn't too worried about the cost or we would be getting single payer. It's a crony caitalism excuse.