If you have a flexible spending account for health (HSA), please come in

Just got the note that open season is about to start and I'm considering starting a health savings account.

For those that have them, how did you decide on the amount you were going to contribute the first year? I don't want to be in a position to lose money b/c we can't use it all, but it would be nice to be able to shield some income from taxes and save money.

Thanks in advance for any advice!

Re: If you have a flexible spending account for health (HSA), please come in

Personally I don't think it's worth it unless you're going to the doctor alot. I did it once when I was going to the dermatologist constantly. I put $500 IN The account that year and used just a little over that. I haven't done it since...

Re: If you have a flexible spending account for health (HSA), please come in

You can use the $$$ for prescriptions, doctor's visits, and other health related items that you purchase. It's pretax money that you contribute with so it's definitely worth it if you don't reach the floor for medical expenses with itemizing on your taxes.

Re: If you have a flexible spending account for health (HSA), please come in

I added up how much I spend on prescriptions, general copays, etc and knew that was the minimum. For me, a couple of dentist trips add up fast. Then assume what you'd spend in OTC drugs (tylenol, advil, nyquil, diaper rash creams, etc). I usually do anywhere between 500-1000, depending on the year.

Re: If you have a flexible spending account for health (HSA), please come in

I love my FSA....I usually contribute 1500.00 for a family of 4. As a previous poster said a few sick visits to the dr. and a few dentist appoints add up fast

Please keep in mind that for 2011, Over The
Counter medicines...are NO LONGER COVERED BY A FSA

If you have never contributed to a FSA before, maybe you can call your Dr.'s and ask for your YTD spend so far. This should help you figure out how much to contribute

Re: If you have a flexible spending account for health (HSA), please come in

be careful - there is a big difference between an FSA and a HSA

FSA - expire at the end of your plan year - loose what ever is not used

HSA - does not expire and goes with the high deductible health insurance - this one is good to put maximum you can in - can move between companies

Re: If you have a flexible spending account for health (HSA), please come in

my son was sick a lot and needs routine monthly medications with numerous specialist visits...and I knew that we wanted to get pregnant again and lab work was going to cost me...with that said...I underestimated what I thought i would need..and only put in for $500.

I saved all of the receipts over the course of this year and so far have exceeded more than $800...

keep in ind...if you do not have any expenses coimg up you can alwasy buy OTC medications and get reimbursed for them.

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

You can also use it to get reimbursed for eyeglasses, contacts and contact solution.

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

for a family of 4 we put aside $1000 this year, when i was pregnant we did $1500. both times we used all of it up and then some...

what i elected to do this year is buy a new pair of glasses which cost me $450 after benefits kicked in. i could have easily submitted copay and other expenses and hit the 1K, but decided to submit the larger bill and avoid the paperwork hassle. i was due for a new pair of glasses, i just wait until the end of year to see what's left and what we want/need to do...

i would suggest to start low and then increase if you see it works for you...

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

I have an FSA, not HSA, and what I did was figure out about how often I go to my PCP, OB, specialists, how much each copay would be, plus normal prescriptions I pay for (like BC or allergy meds etc). Plus dentist fees. Also added in for new glasses and contacts in the years I need them. I usually do $1000-1500 and never have any left over.

Re: If you have a flexible spending account for health (HSA), please come in

We got a new medical plan....and we have to meet our decuctable of $900 - as there are no co-pays for office visits, before we have a no charge visit - you just pay the cost of the visit until you meet the deductable...so we are doing $1000 for 2011 for the 3 of us..Between my doctor appts, the baby's, and RX, the baby's cardiologist - to walk in the door and to get an echo is $2200....soooo, the $1000 will go quickly and of course it is pretaxed and we get a debit card which is so easy to use !

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

I have an FSA with work. I figured how much I spend on my BCP and regular check ups every year and put that plus I think an extra $50. My BCP cost actually went down when I switched to DH's insurance, so now I have extra money on the FSA that I hadn't expected. DH went to buy cold medicine the other night, so I made sure he took my FSA card to pay for it. I think in all, my FSA card had like $150 or $200 for the year on it.

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

if you looking to get it for 2011 I would seriously discourage it. the IRS made a lot of changes. you used to be able to use it for over the counter meds, formula, diapers, bandages etc. as of 2011 you can only use it on co-payments for doctors, out of pocket medical bills associated with doctors and hospitals and prescription drugs. you can no longer use it for over the counter meds, diapers, bandages etc.

unless you have a lot of out of pocket medical its really not useful as of 2011

Re: If you have a flexible spending account for health (HSA), please come in

FYI for everyone with an FSA Plan (and HSA)- if you have money left in your FSA account in 2011 most plans let you use it up within the first 90 days for last years expenses. as of Januay 1,2011- 2010 expenses cannot include OTC meds etc. as long as you submit before Jan 1 2011 you will be covered but it doesn't allow for them to be covered in 2011 at all, even your un-used $ from 2010

IRS Link

The Internal Revenue Service today issued guidance reflecting statutory changes regarding the use of certain tax-favored arrangements, such as flexible spending arrangements (FSAs), to pay for over-the-counter medicines and drugs.

The Affordable Care Act, enacted in March, established a new uniform standard that, effective Jan. 1, 2011, applies to FSAs and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after Jan. 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan.

A similar rule goes into effect on Jan. 1, 2011 for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs).

Employers and employees should take these changes into account as they make health benefit decisions for 2011.

Pub 969 IRS-this one is a lot longer

Message edited 10/27/2010 3:38:09 PM.

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in

DW and I use FSA through my job... I put in $1,200 this year...

i think we are down to about $200 left? it covers all office visit co-pays, drug co-pays, and ANY FSA elligible purchases (ie Advil, contact solution, bandaids, etc...)

CVS has an entire online FSA store which helps....

it is a use it or lose it thing... so at the end of the year we normally just stock up on anything for the house we may need from the CVS store....


also... word to the wise... KEEP ALL YOUR RECEIPTS for FSA purchases... i cant tell you how many times ive had to mail in an itemized receipt because they wanted to make sure it was an eligible purchase. Even when the payment said "Asthma & Allergy Doctors...." on the top.

Re: If you have a flexible spending account for health (HSA), please come in

Message edited 10/27/2010 3:56:43 PM.

Re: If you have a flexible spending account for health (HSA), please come in

Re: If you have a flexible spending account for health (HSA), please come in