Posted on 10/23/2013 12:34:32 PM PDT by SandyLynn
Sorry for the vanity my FRiends, but I need to know if this is happening to others! Today my employer sent out an email stating that because of the Affordable Care Act, as of the beginning of the year, we can no longer use our Flex accounts to pay for anything related to medical care! It can still be used for dental and vision..but absolutely not for medical care! My coworkers and I have used our Flex plans to pay for office co-pays, prescriptions, exams, tests...anything medical-related. And that is no longer allowed thanks to the ACA! Eff you Obama! I know it is wrong to hate..but I absolutely HATE this guy!
Yep. “Flex Plans” and HSAs put way too much control in the hands of the consumer.
How is Katie going to deny healthcare to conservatives if you can use your own money to pay for it?
They tried to put lipstick on a pig,but did emphasis that it is because of obamacare.
I lost the advantage of my HSA because they raised the Minimum Allowable Deductible by $50.
The previous amount was also set by Congress.
So, not only will I now pay taxes on that $1200, the tax deduction on medical expenses goes from 7.5% of AGI to 10%.
On top of the 20% increase in premium, I don’t think I’m gonna be saving that $2500/yr that Zippy said I would
Where I work you can still use for medical (I think) but is capped at $2500 a year due to Obamacare. It used to be be a lot higher. Not that most people would use that much,or afford to keep that much out of their pay, but I do 2K every year for dental...
I thought Obama said he wouldn't raise taxes on people making less than $250,000 - not one dime!
I need to look into what Obamacare has taken away to make sure that what I used to apply it to I can still apply it to....
I have used the max amount and then some every year it’s been available. It was a nice program. With a wife and kids with medications, doctor visits, braces, glasses/contacts, etc., etc., etc., it’s not that hard to rack up several thousand in expenses each year.
Same here! When you add up co-pays, exams, prescriptions, vision care, dental care..it all adds up. And I have always counted on the availability of my Flex plan to cover these things. And unfortunately for those of us in my company, we are not being CAPPED..the medical aspect has been completely CANCELED.
Yes, happened to our family too. Starting Jan 2014 our employer’s fund is cut to $250 instead of a much higher amount.
Who is it that said “you will be able to keep your existing health plan”? They left out the part “if you’re independently wealth or a government worker” ... or, “if your plan is still offered, which it won’t be”.
SandyLynn,
Are your HR people saying that you can not use your Flex Plan monies pay for the premiums of insurance purchased on the public exchanges?
That would be true. I am not aware of any changes that pervent you from using your flex plan dollars to reimburse copays or other out of pocket expenses. You just may not use the funds to pay for the premiums of insurance purchase on the exchange. I will clarify this with one of our consultants. I work in the biz.
The other limits are correct
$2500 per employee per plan max.
Over the counter items no longer eligible without a prescription except for diabetes supplies.
Can’t use Dependent Care dollars to pay for special needs education any more either.
Yes please let us know what is changing. Thanks!!
I don’t have flex pay plan, but also seem to remember that a bunch of OTC type things were also eliminated from expenses for which HSA money could be used. Such as over the counter meds for which there are not prescriptions, maybe something with vision or hearing issues? I really don’t remember the details, just that 0bamacare changed some of these allowable expenditures.
Laws, rules vary by state.
Correct. The only thing you cant do is use the fund to pay for the premiums for insurance purchase in govermental exchange. The reason is the governmental exchanges are subsidized with federal money and if you use pre tax funds it would be considered double dipping.
Its a whole bunch of hokum! The idiots are just trying to screw the whole system.
“Laws, rules vary by state.”
Sorry but thats incorrect. Section 125 Cafeteria Plan rules are federal and as such apply the same regardless of the state you are in.
You guys are right! I did some checking, and the exact words are: “Effective January 1, 2014, employees and employers will no longer be allowed to run Private Major Medical Health insurance premium thru the Private Premium account. This also applies to HRA and V.E.B.A. accounts.” And it does look as though we will be capped with medical expenses that we can run through..more information “to come from HR in an upcoming staff meeting.” It’s just one thing after another, and it’s so frustrating..no one knows what to expect! My husband’s employer insures my family, and they have their annual meeting in November, which is when we will all find out if the company will even offer health insurance next year, and if so..at what costs. When will this end?
Wife’s company shifted from Flex to HSA’s a year or so ago.
Now they are adjusting their contribution to the employee HSA (matched some like a 401K) so that they no longer will match ANY amount if the employee smokes.
And the match is now on a sliding scale based on height/weight charts etc.
It’s not like they were spending a lot matching but it irks here anyway.
Flex plans are MUCH better than HSA’s. You need all kinds of forms when filing taxes (have an HSA? Can’t use the EZ Form). Flex was just a simple Cafe style plan that was exempt from FIT and you could spend the money for ANY medical expense including the purchase of over the counter drugs - even stuff like aspirin, Tylenol, etc.
State law effects the health insurance providers each having various products and costs. States also have varying criteria for full time employment and rules affecting qualifying corporation for group rates.
Yeah!!!
I knwo its difficult but in the event of any confusion, misadvice, or potential problem the law is that the Summary Plan Documents rule. So if you think you are getting the wrong adive from HR, beleive me it happens, take the time and read the SPDs.
I spoke with one our consultants and they came up with one scenario that what you describe could happen. If you were enrolled in what the IRS classifies as a High Deductible Health Plan or HDHP then you would have access to an HRA or HSA which is like a flex account but survives the year and is portable, i.e. you can take it with you.
If you are eligible for an HRA/HSA account then you are no longer eligible for a traditional FSA account. You are only eligible for what is called a limited FSA. The Limited FSA can only be used to reimburse dental or vision expenses. Exactly what you were describing.
Best of luck to you and good job reading that SPD!
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