By now, you SHOULD have received multiple emails, texts, insurance mail reminders and even, phone calls, about “use it or lose it” benefits that will expire at the end of 2022. And, we DID write a blog post about this very topic…several months ago, since WE didn’t want to wait until the last minute! So, were actually not about to drone on about this particular topic AGAIN – everyone else is taking care of that. After all, we don’t want to add to your 11th hour stress over scheduling any appointments, treatments or diagnostics. However, we DO want to remind you of one benefit which can be easily maximized!
In fact, we even saw a social media meme today, with two people sitting on a bench featuring the captions: “Are you excited for the last week of the year?” The other fellow sadly responds: “No, I work in dentistry…everybody wants a year’s worth of treatment in one visit. THIS WEEK.” And we’re fairly confident doctors in every other branch of medicine can easily sympathize!
Now, as promised, we won’t be addressing those medical, dental, vision, or any other direct provider benefits. We know you’ve got other things on your plate in these waning few days of 2022, beside trying to cram a year’s worth of health appointments into a few days. You’re taking care of kids who aren’t in school. You’re shopping for groceries, or maybe even party supplies. You’re making online gift return arrangements and taking advantage of those post-Christmas sales. Right?!?
Guess what? You can do ALL of those things, while also taking advantage of some "free money” that may be about to expire! We’re talking about HSA (Health Saving Accounts) and FSA (Flexible Spending Accounts) that you may have overlooked. In many cases this is money you may have contributed, money compounded by matching funds, or actual monetary allocations for you to spend on supplemental medical-related expenses. And even if it’s money YOU put in, odds are you were able to invest that money with pre-tax dollars. C’mon, regardless of how or where those funds accumulated, it’s YOUR MONEY!
We realize that all of those healthcare – especially insurance – acronyms can be a LOT to digest and use with fluency. PPO…PCP…HMO…DMO…it seems to go on and on. And here we are throwing two MORE into that confusing “alphabet soup!”
We’re going to break it down for you. Or more appropriately, we’re borrowing from the experts at Investopedia.com:
The primary differences between HSAs and FSAs are that an FSA is employer-owned and less flexible; withdrawals are not allowed and contributions cannot be rolled over to the next year, while an HSA is controlled by an individual and is more flexible; withdrawals are allowed with a penalty and contributions can be rolled over to the next year.
HEALTH SAVINGS ACCOUNT:
1. Unused contributions are rolled into the next year
2. Self-employed individuals are eligible
3. Withdrawals are allowed, but include a 10% penalty tax
FLEXIBLE SPENDING ACCOUNT:
1. Unused contributions are lost at the end of the year
2. Self-employed individuals are not eligible
3. Withdrawals are not allowed
4. Must declare how much you want your employer to deduct from your gross pay, and it cannot be changed
Bottom line…if you have an FSA, that money is about to disappear! But, DON’T PANIC! Grocery shopping? Just swing through the pharmacy and stock up on vitamins, over-the-counter pain killers, allergy meds, or anything else you routinely use. That’s one way to make quick work of a sizeable chunk (if not ALL) of those account funds. Just be SURE to check expiration dates on any of these “stockpile” items!
You have other quick, easy, alternatives, as well. Paying bills online? Log in to any of your medical accounts – and this includes vision, dental, physical therapy, etc. – and make a pre-payment on any upcoming treatments. That dental work that exceeded your annual benefit amount, and already have a treatment plan with pricing, can be pre-paid with your FSA account funds still remaining. The same holds true for any sort of exam which you have scheduled. Just make a “down payment” on that upcoming visit! Now, you MAY have to call the office to make that payment; it depends on what sort of online options they have. But, ONE PHONE call can easily put that disappearing money to good use!
As an added benefit – no pun intended, just happy coincidence – knowing that you’ve already invested in this particular health care may be an incentive to get it done. After all, it’s YOUR money, and nobody wants to let money slip through their fingers, with absolutely nothing to show for it. Don’t let part of your “alphabet” expire when the clock strikes 12 on January 1, 2023!