Workers Lose $3 Billion a Year in FSA Contributions (and Employers Get to Keep It)
 

Story

I've always hated FSA "use it or lose it". I never understood the rationale for this other but there must be some arcane deal/rationale for this.

You'd think it would be like ... you can roll over what did not use for up to a max of $X.

HSA is better but needed a high deductible plan.

Workers Lose $3 Billion a Year in FSA Contributions (and Employers Get to Keep It)
 

The rationale is that capitalism in America is not real capitalism

It’s a lie based on politics and votes (dog whistle) but the fact is that capitalism is a construct enabling the higher ups to tease the plebes while keeping themselves in power and lining their pockets.
still the best wealth creator in the world can mitigate world wars when used correctly so it’s not all negative. It’s certainly been identified as such within the last 30 years by the manipulators and thus they’ve gotten really really good and protecting and playing the game.


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That's what capitalism is for sure. You can't have the rich without creating tons of poverty.


I'm going to take a big hit this year with my FSA. I see an out of state psychologist (from north carolina before i moved to indiana) and she has always been out of network, so I pay full price, the FSA helps make that a little less bad. New insurance this year, my shrink is in network, but I already maxxed my FSA before I knew that, as a result I'll probably lose out on $2000 or so.

I dunno buy a ton of extra contacts or some tens machines or even certain fsa approved footwear rather than give it up?

I'm annoyed that most over the counter meds were excluded a couple of years ago. If we were a couple hundred short, it was fairly easy to make it up. You could just redo the medicine cabinet and replace the expired stuff, replace a worn out heating pad or arm brace - that sort of stuff. But most aren't in ours anymore.

Also, agreed - the use it or lose it aspect is just stupid. Again, should be rolled over - businesses can take the tiny hit tax-wise rather than having employees play guessing games with what they might need.

We had one for daycare and that was really nice while the kid was small. It had a $5K max and the reimbursement process was really wonky. But we figured that saved us at least $1K per year.

SI

I unintentionally gamed the system back when I got LASIK. I used an FSA to pay for it, and you could use your yearly total at anytime. So if you had a procedure you knew was going to cost say $2400, you could have it done in January, and just pay in $200/month and not make any more FSA claims for the year. I had LASIK done in January of 2000, and changed jobs in March. At the new job I told them I still had a balance, and if their FSA would cover the amount I still owed. They said unless I signed something saying I was responsible for the balance, that I was home free.

If you take any meds that are costly, you could try to get 3 month supplies before the end of the year. Or see if over the counter medicines and medical supplies are covered.

Contacts and glasses are a great idea. Good call!

Also, most plans give you through March of the following year... at least mine does.

Prescription safety glasses are great for the yard work type tasks.

OTC meds are now eligible for HSA/FSAs again. the 2020 CARES act restored it.

Ooh. Good to know

SI

This is a great point, I am due for an eye exam this year and likely new glasses. I'll save that for April/May (our FSA "year" starts June 1) and get something fancy.