Flex Accounts: Year-End Spending Spree

Nearly everyone could use a little extra money this time of year.

Where can you find some?

Have you forgotten about your Flexible Spending Account (FSA)? Millions of hardworking Americans contribute monthly to an employer-managed Flexible Spending Account.

Every FSA dollar is pre-tax money that can be spent on health-related purchases.

Depending on your income and tax rate using FSA funds can generate genuine out-of-pocket savings amounting to 30% or more. Who can turn-up their nose at 30% savings?

Here are some common examples of eligible health care expenses:

• Co-payments, co-insurance and deductibles
• Acupuncture
• Artificial reproductive technologies
• Childbirth classes
• Chiropractic care
• Contact lenses and contact lens solutions, cleaners, and cases
• Dental care (including crowns, endodontic services, implants, oral surgery, periodontal services, sealants.
• Diabetic supplies
  
• Expenses that exceed medical, dental or vision plan limits (including dollar or visit maximums or amounts that exceed plan allowances, such as out-of-network providers)
• Hearing aids (including batteries)
• Home medical equipment (e.g., crutches, wheelchairs**, canes, oxygen, respirators, etc.)
• Laser eye surgery
• Learning disability treatments and therapies (including speech therapy and remedial reading)**
• Mattresses and bed boards**
• Medical supplies
• Occupational therapy
• Orthodontia
• Orthotics
• Over-the-counter medicines (not including vitamins and dietary supplements)
• Physical therapy
• Prescription drugs
• Preventive care screenings
• Prosthetics**
• Psychiatric services and care
• Shipping and handling charges for medical needs, such as mail-order prescriptions and eligible over-the-counter items
• Smoking cessation programs (including over-the-counter treatments)
• Specialized equipment or services for disabled persons (e.g., automobile modifications; Braille books and magazines; guide, companion or service animals; home alert systems for visual/hearing impaired persons; note-takers or ASL interpreters; tape recorders and typewriters for the visually impaired; etc.)**
  
• Sunscreen
  
• Transportation expenses related to medical care
  
• Vision care, eyeglasses (including prescription sunglasses)
  
• Water fluoridation**
  
• Well-baby and well-child care
  
• Whirlpool baths**
  
• Wigs (for hair loss due to a disease)**

**These expenses require a letter of medical necessity from your health care provider in order to be considered eligible for reimbursement. The letter must include the diagnosis or symptoms for which you or your dependent are being treated, along with specific information on how the product or service will alleviate symptoms or improve function.

Some ineligible health care expenses include:

• Cosmetic procedures (unless required to restore
  
appearance or function due to disease or illness)

• Expenses you claim on your income tax return
  
• Expenses reimbursed by other sources, such as insurance plans
  
• Fitness programs (unless medically necessary)
  
• Hair transplants
  
• Illegal treatments, operations, or drugs
  
• Insurance premiums
  
• Physician retainer fees including boutique and concierge practice membership fees
  
• Prescription drug discount program fees
  
• Weight loss programs for general well-being

Remember, this is your money. It must be spent before March 15, 2007. Use it or lose it! Check with your Human Resources office for more specifics regarding how the FSA operates at your workplace.

Related Topics:

• Tips to Do Holiday Shopping the Healthy Way
  
• Get a New Look for the New Year

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