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.
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.