Urgent care near me Key points
- A Flexible Spending Account (FSA) allows employees to allocate pre-tax dollars for eligible health and medical expenses.
- FSAs are offered by employers and the allocated money is available upfront, deducted from paychecks in intervals.
- FSA cards can only be used for IRS-approved expenses not covered by insurance, such as ambulance services, psychiatric care, and prescription drugs.
- FSAs have a "use it or lose it" rule, requiring all funds to be spent by the end of the plan year, with some plans allowing a rollover or grace period.
- FSAs operate on a "use it or lose it" rule, meaning unspent funds are lost at the end of the year. Some plans allow a rollover of up to $500 or a grace period for spending.
How to Get an FSA Card
An FSA is tied to employee benefits – a company must specifically offer FSAs in their benefits package. If your employer does offer an FSA, consider using it as a way to offset medical costs.
You’ll need to opt-in to setting up an FSA, so make sure to review and confirm your benefits each year. You’ll be asked how much you want to put towards an FSA card. For 2019, you can allocate up to $2,750.
What’s great about FSAs is that all the money you allocate will be available right away, but it will be taken out of your paycheck in regular intervals. So if you need the funds to pay for a medical expense early in the year, those funds will be available to you upfront.
What You Can Pay for with an FSA Card
FSA cards can only be used to pay for certain qualified expenses – things you pay for out-of-pocket that aren’t covered under your insurance plan. The IRS provides a complete list of approved expenses so you know ahead of time what’s covered.
Some of the eligible services and products include things like:
- Ambulance services
- Fertility treatments
- Psychiatric care
- Contact lenses and eyeglasses
- Prescription drugs and medicine
- Breastfeeding supplies
- Blood sugar monitors
You can visit websites like the FSA Store to easily browse and purchase additional eligible items.
Claims & Reimbursement
It’s important to remember an FSA can only be used for covered expenses. If you try to use your card to pay for other types of services and items, you can get denied upfront or you’ll be asked to provide documentation what it is you used the card to cover.
Even when you do use your FSA card to pay for an eligible expense, it’s still good practice to save receipts.
In case you forget to use your FSA card at the time of payment, there’s also a way to request reimbursement. Just save your receipts and submit them to your FSA administrator afterwards to get reimbursed.
FSA Limits and Carryover
One important factor with your FSA is that it has a “use it or lose it” rule. That means you must spend the money in your FSA by the end of your plan’s year, or else you’ll lose whatever amount hasn’t been spent.
Some plans do allow a rollover of up to $500 into the next year and/or a grace period that provides an extension for you to use up your FSA – usually up until March 15. However, this is not always the case, so make sure to check your plan to confirm if you have a rollover option or an extension.
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As you think about allocating funds towards an FSA, consider your family’s medical needs. Think about the items you may consistently purchase – like first aid supplies, contact lenses, or prescription medicine. Then consider potential medical needs for the upcoming year - such as braces, breastfeeding supplies, or surgeries.
Based on what you expect to pay for health and medical expenses, allocate the amount you feel comfortable with. And remember, you can always use your FSA card to stock up on items like band-aids, ibuprofen, and even sunscreen so that you don’t lose leftover funds.
Related Healthcare Payment Topics
Health Insurance 101: Key terms and plan types
Is Urgent Care Covered by Insurance?
How Much Does Urgent Care Cost?
FAQs
What is a Flexible Spending Account (FSA)?
An FSA is a benefit offered by some employers that allows employees to allocate pre-tax dollars for eligible health and medical expenses.
How can I use an FSA card?
You can use an FSA card to pay for IRS-approved expenses that are not covered by your insurance plan.
Are there any limitations to using an FSA?
Yes, FSAs have a "use it or lose it" rule, meaning all funds must be spent by the end of the plan year. Some plans may allow a rollover or grace period.
How can I get reimbursed if I forget to use my FSA card?
If you forget to use your FSA card, you can request reimbursement by saving your receipts and submitting them to your FSA administrator.
What happens if I try to use my FSA card for non-covered expenses?
If you try to use your FSA card for non-covered expenses, your payment can be denied or you may be asked to provide documentation for the expenses.
How should I decide how much money to allocate to my FSA?
Consider your family’s medical needs and the items you may consistently purchase, like first aid supplies, contact lenses, or prescription medicine. Then consider potential medical needs for the upcoming year. Based on what you expect to pay for health and medical expenses, allocate the amount you feel comfortable with.
Can I use my FSA card to stock up on items?
Yes, you can use your FSA card to stock up on items like band-aids, ibuprofen, and even sunscreen so that you don’t lose leftover funds.
What happens if I try to use my FSA card for non-eligible expenses?
If you try to use your FSA card to pay for other types of services and items, you can get denied upfront or you’ll be asked to provide documentation of what you used the card to cover.
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History
Solv’s team of medical writers and experts review and update our articles when new information becomes available.
November 26 2019
Written by Solv Editorial Team
Medically reviewed by: Dr. Rob Rohatsch, MD
Solv’s team of medical writers and experts review and update our articles when new information becomes available.
November 26 2019
Written by Solv Editorial Team
Medically reviewed by: Dr. Rob Rohatsch, MD
