Are you looking for a way to save money on those need-to-have items that you buy throughout the year? You know, not fun items or cool clothing, but rather those medical expenses that have a way of draining your wallet? Have you ever considered using a medical Flexible Spending Account (FSA)? Flexible Spending Accounts have been around for over 50 years, initially created in the 1970’s by the Internal Revenue Service as a solution to the addition of deductibles and elimination of dental and vision insurance by many employer-sponsored health insurance plans. The expenses that insurance didn’t cover – but employees still experienced – were given a tax-free pass by the IRS up to an annual limit.
Over the years the accounts have gone through many changes: adding the convenience of debit-card access, on-line claims submission services, increases in the annual limits, and elimination of many over-the counter expenses as eligible. So how do you know what you can and cannot use the account for, and is it really worth the hassle of claims submission? Continue reading “Taking a Second Look at Flexible Spending Accounts”