Finances Have You Worried?
Your FSA Can Put You at Ease
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In today's unpredictable economy, being a smart shopper is more important than ever. According to a recent study, 57 percent of consumers say they are worried about the possibility of a recession — and another 57 percent say they cut back on their spending in the last few months because they're worried about their financial situation. So when you're taking into account how much you're spending at places like the grocery store and the mall, don't forget about the money you spend on your family's health care needs. Although this may not be your favorite type of "shopping," the money you put towards your family's health can have a big impact on your wallet.
When brainstorming ways to save money, keep in mind that contributing to a Flexible Spending Account (FSA) can help. An FSA is a tax-advantaged account that can be used to pay for medical expenses that are not covered by insurance, such as child care, cold medicine, band-aids and flu shots. Since your contributions are free from federal and most state taxes, you save money by participating. Keep in mind that to start or change your contributions to an FSA, you must wait until the next Open Enrollment period.
FSAs — Easier Than Ever
Keeping track of health benefits rules and plans can sometimes be difficult, but many health benefits providers took note of this, and are making it easier for you to use your FSA dollars.
- Health debit cards: Some plans offer FSA debit cards that allow you to make payments at the check-out counter of participating stores. These cards are used much like a standard debit card — and they eliminate some of the paperwork associated with FSAs. These cards are now being accepted at many doctors' offices, drug stores and even websites, like for your mail-order prescriptions.
- Paperless reimbursement: This new program gets rid of even more paperwork by eliminating the need for individuals to manually submit a claim or send receipts after making a purchase with an FSA debit card. This system can save you time, postage and might even free up some space in your cluttered filing cabinets.
- More online access: To provide consumers with more up-to-date, easy to access information, some providers are offering a number of online resources. These resources help by listing all goods and services covered by FSA accounts and stores that participate in debit card and paperless reimbursement programs. Some even provide an up-to-the-minute overview of your account status — so you can learn how much you have left in your FSA at any time.
Now that they're becoming increasingly easier to use, it's smart to take advantage of an FSA if your plan offers it. So if you don't currently have one, consider it at your next Open Enrollment period. By participating, you'll be taking one more step to help save money for yourself and your family. Click here to learn more about Flexible Spending Accounts or talk to your health benefits provider or HR manager.
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