Posted on 10/23/2013 12:34:32 PM PDT by SandyLynn
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.
Fledermaus,
You are correct but you can no longer use the traditional Flex plan to reimburse OTC items like Tylenol either. That changed for this plan year. They are gutting the plans usefulness. Howeever, remember that while HSA requirements are stiffer they also continue year after year and are portable. Also your HSA account earns interest and can be invested at your direction.
These are big deals since you can take them with you if you lose your job and the money accumulates year after year. Unlike Flex you don’t lose anything you didnt spend at the end of the year.
Yep. Health insurance plans are designed state by state an managed at the state level by the insurance companies. That's why the BCBS (Blue Cross Blue Shield) plans in Texas are different than the BCBS plans in California.
But what does that have to do with Flexible Spending Account plans? Two different animals. FSA’s were established as part of IRS Section 125 Cafeteria Plan laws.
Do you realize that you can enroll in a Flexible Spending Account plan WITHOUT enrolling in any health insurance? They are both considered “benefits” but that is where the similarity ends. Not being condescending here just saying one has nothing to do with the other. Health insurance plans are state based and regulated "insurance" plans and FSA plans are federal pre tax reimbursement plans.
Thanks for clarifying, Syntyr!
Thought I made it clear when I said Flex “was” simple.
I did forget we had to spend it by the end of the term. But wife was getting dental work done and we planned on it anyway.
I do like the idea the HSA accumulates. Pretty sure the Dems/libs/Rinos will want that eventually!
“I do like the idea the HSA accumulates. Pretty sure the Dems/libs/Rinos will want that eventually!”
I enrolled in an HSA this last year. I figure the government will screw it up eventually. They screw up everything they touch!
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