Are they worth doing?
We never have used them because in the past DH’s company process was that we would have to submit receipts for reimbursement and I know that at least half the time I wouldn’t get around to that. 
But now they offer a debit card. I’m still finding out more info but for those of you who use them, do you feel they are worthwhile? I know that it’s “use it or lose it”, so do you estimate your costs for the year and hope that you’re right?
And for those who use a debit card system - can this be used for any eligible expense? For example - if I go to Target and buy bandages, can I just use the debit card to pay for this? Same at doctor’s office for a co-pay?
Any info would be much appreciated!
We used to have “use it or lose it” with receipts, this was very inconvenient and we probably didn’t save that much money. Now we have high deductible and the money doesn’t disappear in the end of the year, this is so much better. Debit card is also very convenient. I didn’t use it to buy things, but I did for copays, dentists and chiropractors. If yours is “use it or lose it”, it’s probably worth it if you have fixed yearly medical expenses, like medications or some kind of regular therapy, or if you know you’ll have big expenses in the coming year.
It’s not worth my time. I skipped all those things. Congress should simplify rules regarding healthcare instead of creating more rules and paperwork. Right now, rules about medicare part A, B, C, D already give me a headache. Average citizens will not have the mental capacity to follow those rules as they are getting older. I will be lucky if I can remember when to take my pills in the next couple years.
I have always taken advantage of HSAs. I wish the limits were higher because we never make it past February before maxing out. I do not use the debit cards because I would rather get points or miles on my regular charge card. With smart phones it is really simple to take a picture of a receipt and submit it.
$800 savings in less than thirty minutes. Well worth my time. But $2500 is chump change. The max amount should be $10.000 or more.
I agree/the limits should be much higher. I use it as it is tax free money.
Definitely worth it, especially with a debit card.
And here’s a tip: If you anticipate you’re going to leave your employer during the year, you can fund your Health Care FSA to the max. Incur high claims before you leave. Even if you haven’t funded the entire annual amount from your paycheck before you leave, you’ll still be able to claim the whole amount you incurred and be reimbursed for that amount.
It’s been a lifesaver for us. We have a debit card and use it for rx, doctor visits, dentist, optometrist, and the orthodontist. Only once have we made it to November and still had money left. That year, I ordered more contacts to use it up even though I didn’t really need any. I wish the max was more than $2500 as with 4 kids we have no problem spending it. Typically the only time I need to submit receipts to verify payments is when I use the debit card at the dentist and optometrist.
I used it a few years when H’s employer offered it. It required us to submit receipts so I’d save them awhile and lump them together to submit at one time when the total was large enough to be worth my time and energy.
It did allow us to get reimbursed for contacts, glasses, reading glasses, prescription sun glasses, copays for Rx, copays for seeing dentists & MDs, blood pressure machine, etc. We generally got the max and used it up by August or earlier each year. We didn’t get a hearing aid, but the copay for that would also be covered, as well as orthopedic boot, crutches, scooter, cane, walker, and many other durable medical equipments. Some food supplements may also qualify, depending on plan documentation requirements.
We did also ask and get approval using it for travel to see MD out of state as a qualifying medical expense.
Back when it was $5k/year, DH and I each signed up for the max and used it up. Even with both guys off our plan, we could still go through $7500 now.
@veryhappy, I left a previous employer in August and had already accrued $5k in expenses. Boss refused to pay out the balance even though it had not yet been deducted. Had to write a letter citing chapter and verse from the regs and my profesional Q&A resource books. The irony is that said employer was a benefits consulting firm.
I like getting the cash back instead of using a credit card. Made it easier to throw into savings for the next round of bills.
Our plan now is through DH’s employer. They automatically refund the medical expenses based on EOBs. If we are ever short on medical expenses, I could submit forms for dental and vision claims. Haven’t had to do that since the benefit was reduced to $2500.
We have always used one when it was available. It was great for births, braces, copays, eyeglasses and contacts. This time we have an HSA which I am not familiar with but I have already emptied the card of the first deposit with just acne medicine. I don’t think we will have a problem using up the funds (although I am aware they roll over). I wish it had been active a couple months ago when our daughter had her wisdom teeth out.
Let’s clarify some definitions here. There are two types of health care accounts. One is an FSA (Flexible Spending Account). That one is “use it or lose it”. And if you incur higher expenses than the balance in it, you can still get the cash out.
The other is an HSA (Health Savings Account). That one rolls over every year. But you can only withdraw up to the amount funded. You can also take an HSA with you when you retire or change employers. Money goes in tax free, interest (if any) accrues tax free, and it can be withdrawn tax free if used for eligible medical expenses. It’s kind of a medical IRA.
We currently have an HSA, and I am funding it to the maximum for the time following retirement when we are likely to incur higher medical costs.
well worth the effort. Yes, you have to estimate expense up front, but you just have to be close to save the taxes.
If you have money left over in December, you can always go get some prescription sun glasses.
Debit card is handy for picking up prescriptions or paying for eye glasses or paying for co-pays at doctor’s office.
Thanks for the input! And thanks, @Chedva for pointing out the differences. We are looking at the FSA. @MaterS - thanks for bringing up the issue of getting points on credit cards…I am big on that so may be worth my while to submit receipts instead.
Right now, I take no prescription meds; DH has a couple but all are pretty inexpensive - total of about $50/month out of pocket. DH wears glasses but not contacts; DS2 also wears glasses for driving, tv, etc. DS1 is the only one who wears contacts, but he’s aged out of our policy. Still, by the time you add in co-pays over the year (and the low limits) I think we’ll give it a try for the upcoming year. If it’s not worth the time and trouble, we won’t do it beyond that.