Use Your Health Benefits Before the Year Runs Out

By Lisa Zamosky

Here we are at the end of another year, which means that now’s the time to think about your medical benefits and how you can get the most of your coverage before 2011 comes to a close.

Below are three health benefit-related steps to consider taking before saying goodbye to the year:

1. Exhaust your benefits. Health insurance benefits operate on an annual basis, with a certain number of services, such as preventive care (think check-ups or cancer screenings) allowed each year. Remember that as a result of health reform, many preventive services may be available to you with no co-pay or co-insurance. Also, take advantage of semi-annual dental cleanings or a free pair of glasses or contact lenses allowed by some benefit packages.

2. Satisfy your deductible. Your new health plan deductible – the amount you have to pay out-of-pocket before health insurance starts to pick up the bills – will reset at the start of the year. So if you’ve already satisfied your deductible, now is the time to get in those last-minute treatments, especially if you’re in need of care that is costly. Your insurer will generally pick up the tab as long as care is provided before the end of the year.

3. Use FSA funds. Remember that Flexible Spending Accounts (FSAs) are a use-it-or-lose it-type benefit. If you fail to use the money you deposited into the account before the year is up, you’ll forfeit the funds.

There are a wide range of medical expenses that can be paid for with FSA money, including prescriptions, contact lenses and some over-the-counter products. Keep in mind, however, that at the start of 2011, consumers are no longer allowed to use FSA money to purchase over-the-counter medications, such as Tylenol or Sudafed (insulin is the one exception to this rule) unless a doctor writes a prescription for them.

Some employers will allow you a grace period that lasts up through March 15^th of the following calendar year to spend the money in your FSA account. You’ll need to check with your human resources department or FSA administrator to learn the details for your plan.

Your Turn: Which health benefits do you rush to use by the end of the year? Have you found a way to maximize your benefits? Share your tips in the comments section below.