We all have routine health care expenses that are not covered by our insurance.
The value of a health care flexible spending account, or FSA, is that it is exclusively-designed to save you money on thousands of routine expenses like prescription drugs, co-pays, dental care or contact lenses. For some, the savings can be as high as 40%. The average participant saves more than $300 annually.
Another big advantage is that the entire annual amount you set aside in an FSA, which is taken out of your paycheck throughout the year BEFORE taxes are paid, is available to you at the start of the plan year. This means you’ll have money available for both planned and unexpected medical expenses on day one.
You should be conservative when determining how to much to set aside in an FSA since unspent funds that remain in the account at the end of the plan year will be forfeited.
Click here to learn about the impact of health reform on FSAs.
“My FSA is a life saver! Last year I was diagnosed with a malignant tumor and luckily I was able to have the necessary surgeries to remove it immediately since my FSA covered all of the out-of-pocket costs for my deductible and medicines.”
Annual Savings: $816