Pre tax medical expense accounts

[~Bethany~]

Do you participate? Tell me how it functions. I know ours requires 'itemized receipts', and *nothing* else will work for reimbursement. How do you make sure you get a receipt like that?

[SmartyMama]

I think the FSH/HSA account is the smartest thing we've done! Last year, our FSA account was linked to our insurance card and our RX card. When I paid a $20 copay at the doc and then spent $50 on meds at the pharmacy I would get a check for $70 in about 5 days. I didn't have to submit receipts at all. When DS had surgery with a $400 deductible they sent me a check for $400. The only mistake we made was we didn't put enough in, so we maxed it out by April (2 surgeries and monthly meds killed us). We originally decided on $1200 ($100 per paycheck) because that was our max out of pocket. I never really thought about RX's and what-not.

This year we have a FSA debit card. It has an $1800 credit line on it. We've elected to take out $150 per paycheck so over the course of 12 months we will deposit $1800. I use it at the docs office to pay copays, at the dentists office to pay for visits, and I used it at the Walmart eye place to pay for our glasses. When DD gets her braces in July I will use the balance to pay for it.

Honestly, it's a SMART way to lower your tax liability. Drugstore.com will send you an FSA receipt any time of year showing all FSA eligible purchases. When used at a doc, dentist, etc you don't have to send in a receipt because they are a participating provider and they info is sent electronically.

[Mamax4]

Oh gosh, I love ours! It has picked up every stray payment going. From my ds' allergy med co-pays to all the well-child co-pays to the teen Clerasil medication from the grocery store. It also refunded us all the co-pays we had for oral surgery this yr (3 of us). We have all had colds and coughs this week, and I did buy Mortrin (for me) , and Benedryl for the kids. I also bought more saline for the nebulizer -- it's all itemized on our register receipt. We will get the money back for that as well. Too bad they won't give refund my garlic and herbs money.

[sarah10998]

My account gave me a mastercard with the limit being my contribution. When I have had to submit a recept I have just sent the store one and had no problems with that. I love it and it have really helped my budget. Sarah

[~Bethany~]

Wow! I never thought that the account might be linked to in network providers, or that they might give you a way to buy directly out of that account. I thought it would be a huge hassle to get reimbursed for the funds. Huh. I am definately going to look into this.

[mamabear]

See, I recommended it on that other thread but we don't do it. We should though! Going to look into it, myself!

[Momof6]

I know nothing about these. Here is what we are doing.

Ok, we already put money aside every month for the following and it builds up each month for when we need it:

1. Dental. Only enough for regular check-ups twice a year. (except for the big $$ stuff my dh is finishing up but we are paying that one off with the tax return)

2. Eye care (so we have the money for that for when we need it)

Then this is the rest of the situation for us: (tell me if there is a better way?)

For our monthly Rx bill, we budget that into our monthly budget so we have the money for that each month. (I think we do have a decent Rx plan....never paying more than $50 co-pay. But we do have a LOT of Rx due to chronic medical issues)

So, will one of these accounts you all are talking about help my family? We are paying higher monthly preimums for a much better health insurance plan through dh's work. (our family deductible is now $600 a year instead of $4000 a year which it use to be) Also with this new better insurance plan, we got some kind of reimbursment this past 2005 year based on stuff that was not covered by our insurance. We got a $1300 check for dental which we ran and put on our dentist bill as soon as we got it and also another $400 check for surgery for something that was not covered. It is called some kind of reimbursment...but I am not sure since dh and I did not know his employer was participating in this until we got the check. (that money did help and it was so exciting to put it on those bills!!!)

We do claim a lot on taxes each year. Not only for actual out-of-pocket for Rx, doctors of all kinds but also for our mileage traveled since we have to travel a long ways and also for lodging.

If I can be doing better I want to be educated. We are trying to plan ahead of time since we do have such high bills on a ongoing basis but I am wondering if we could be doing better. Yet at the same time, we don't want to be putting money here and there which will be taking from our committment to put (for the time being) all extra money on our debt. (part of Ramsey's plan)

Thanks all!
Michelle