Flex Plan

[NotUrsula]

It's a bit of a PITA to lose the OTC meds benefit, but we really haven't had it very long. OTC drugs were only added to FSA coverage a few years ago. The change just puts the rules back to what they originally were when FSA's were first created.

Contact lens solution was allowed under the old rules. I'm thinking that insulin pump supplies will also be allowed.

 

[Brer Shay]

Insurance premiums definitely won't be cheaper and in a couple of years those of us with a so called "premium (cadillac)" plan will pay a 40% premium tax. (This typeof plan has not yet been defined). So if you have good insurance now forget about saving money and in a couple of years forget about having good insurance as companies will be dropping their good plans to save money.

That's actually the root of this and coming changes to Flex plans. Just as the Act will require a tax on whatever the legislature defines as a premium plan, the reasoning is that those who have flex plans shouldn't receive tax benefit for saving for these medical expenses in the first place. That's why the $2,500 limit is coming, and that may go down as well.

As PP mentioned, it should cause others to reconsider the amount they set aside. I've always added extra in for replacing eyeglasses/contacts for my kids if their vision changes drastically in the same year. Every other year or so, I don't need to do this for one of the kids, so I have used the leftover to stock up on allergy meds, cold remedies, etc.. Money left in these accounts at the end of the plan year reverts to either your employer or the insurance company, depending on how the plan is set up.

 

[sydneysmom]

I got the notice too. It's part of the Patient Protectionand Affordable Care Act that the lovely liberal congress signed into effect in the spring. I suppose this will somehow make healthcare MORE affordable for the working class. Gee...I work and this sucks.

The thing is, they're eliminating this from Flex Spending because Flex Spending is a pre tax deduction. They won't be able to collect tax if you use Flex Spending, so if those OTC products are eliminated, think of how much additional tax will be collected.
Also, by putting a "ceiling" amount on what you can withhold for Flex Spending, it limits the "pre tax " amount. We're going to now pay tax on money that was previously taken out as pretax.

Here's what worries me. Say you get to the end of the year and still have like $ 400 ( or whatever) left on Flex med. ( now, I know you have until March to use it, but you know what I mean) Before, you could just use that money for OTC items so that you could "use it up". What are we going to do now? Quick call the doctor and make appointments so we can use it up ? Or are we going to lose that money ? I'm a little nervous to try to figure out an amount to put on our Flex Med for next year.

 

[Schachteles]

We got that letter back in May because my DH's plan runs May 1 thru April 30. It is everyone, it is just going to take most people longer to get the letter since their benefits probably run year to year. It stinks, because I know anytime I had extra $ at the end of the year I could at least load up on bandaids and Advil.

 

[CowboyCO]

My DH just got a letter that stated the flex plan can no longer be used to buy any OTC meds as of Jan 2011. Does this affect everyone? The reason that was stated is because it was going along with new healthcare regulations. I am just wondering if anyone has any more details.

It's called an income tax increase. If you don't put that money into your flex, it is taxed at the full withholding rate.

The bonus is for the flex companies that hold the accounts. If you didn't catch this change, you would be sitting in the last month trying to use the last of your flex on OTC drugs, only to find out that you can't. Use it, or LOSE IT to the insurance company. Welcome to the New, fundamentally changed America.

 

[momejay]

We got a similar letter that effected my DD's allergy meds. I started paying full price for them in June.
My problem is that my non-verbal, teenage, autistic child was told, via a letter addressed to him & not his parent, that his insurance was cancelled as he no longer qualified for it. The letter was dated June 16th & his insurance was cancelled as of July 1st. I found out today when I went to refill his antipsychotic medication. It cost me $236 for a week's supply. I also refilled his prescription allergy medication at $160 for a month's supply. Who knows when new plan kicks in or why he was kicked out of old plan.
Where are parents supposed to get the money to pay for needed meds? What happens if parents can't afford the meds that allow their children to remain living at home? How is it cheaper to pay for residential care instead of a few medications & behavioral therapy?

 

[LadyBeBop]

We got a similar letter that effected my DD's allergy meds. I started paying full price for them in June.
My problem is that my non-verbal, teenage, autistic child was told, via a letter addressed to him & not his parent, that his insurance was cancelled as he no longer qualified for it. The letter was dated June 16th & his insurance was cancelled as of July 1st. I found out today when I went to refill his antipsychotic medication. It cost me $236 for a week's supply. I also refilled his prescription allergy medication at $160 for a month's supply. Who knows when new plan kicks in or why he was kicked out of old plan.
Where are parents supposed to get the money to pay for needed meds? What happens if parents can't afford the meds that allow their children to remain living at home? How is it cheaper to pay for residential care instead of a few medications & behavioral therapy?

Ouch. I am assuming your DD turned 19 last month. You should have been notified though. Couldn't you keep her on as a permanently disabled child.

 

[GOOFY4DONALD]

The thing is, they're eliminating this from Flex Spending because Flex Spending is a pre tax deduction. They won't be able to collect tax if you use Flex Spending, so if those OTC products are eliminated, think of how much additional tax will be collected.
Also, by putting a "ceiling" amount on what you can withhold for Flex Spending, it limits the "pre tax " amount. We're going to now pay tax on money that was previously taken out as pretax.

Here's what worries me. Say you get to the end of the year and still have like $ 400 ( or whatever) left on Flex med. ( now, I know you have until March to use it, but you know what I mean) Before, you could just use that money for OTC items so that you could "use it up". What are we going to do now? Quick call the doctor and make appointments so we can use it up ? Or are we going to lose that money ? I'm a little nervous to try to figure out an amount to put on our Flex Med for next year.

According to our letter we can still buy bandaids and first aid type items.

 

[sydneysmom]

According to our letter we can still buy bandaids and first aid type items.

so you won't be able to get OTC cold medicine or that kind of thing but you will be able to get bandaids, neosporin....that kind of thing? I wish we'd get our letter already so we know!

 

[GOOFY4DONALD]

so you won't be able to get OTC cold medicine or that kind of thing but you will be able to get bandaids, neosporin....that kind of thing? I wish we'd get our letter already so we know!

Yes, According to the new rules you cannot buy any OTC pain meds, cold, flu or allergy meds. Unless you get a Dr's note and pay OOP then submit it with the note for a reimbursement. You still may use it for bandaides, first aide type items, co-pays, dental and eye care including contact lense solution (not sure about eye drops) and prescriptions.

 

[dreamin_disney]

anyone have american fidielty???If so have you recieved a letter yet? I havent and mine ends in Dec.

 

[bettymae1121]

I don't understand the uproar. I spent less than $100 on OTC meds last year, my effective Federal tax rate was a hair above 10% so that saved me about $10. Woop dee ding! It's nice to have, but I'm not going to miss it at all. I use the bulk of my flex spend funds for things like my dentist/eye care expenses and the few co-pays I have.

I know those that have allergies can spend a ton on Claritin and the like, but if your allergies are THAT bad you can just get a prescription on your next doctor's visit and you're good to go. Heck I bet you could get the script just by calling, if your allergies are that bad your doc probably already knows about it and won't have a problem just doing it over the phone. Same with other cronic conditions that use a lot of OTC meds, if you have a cronic issue, you're already under a doctor's care. Just have your doc write you a script the next time you see them. Yes it's an extra step but I just don't see how it is that big a deal.

 

[Ava]

I don't understand the uproar. I spent less than $100 on OTC meds last year, my effective Federal tax rate was a hair above 10% so that saved me about $10. Woop dee ding! It's nice to have, but I'm not going to miss it at all. I use the bulk of my flex spend funds for things like my dentist/eye care expenses and the few co-pays I have.

I know those that have allergies can spend a ton on Claritin and the like, but if your allergies are THAT bad you can just get a prescription on your next doctor's visit and you're good to go. Heck I bet you could get the script just by calling, if your allergies are that bad your doc probably already knows about it and won't have a problem just doing it over the phone. Same with other cronic conditions that use a lot of OTC meds, if you have a cronic issue, you're already under a doctor's care. Just have your doc write you a script the next time you see them. Yes it's an extra step but I just don't see how it is that big a deal.

Most people probably don't save much in taxes on the amount spent on OTC meds, but it was a good & easy way to use up any remaining funds in your Flex account at the end of the year. I think the concern many have is that they will end up losing money from the accounts with no easy way to just use it up.

 

[dreamin_disney]

I don't understand the uproar. I spent less than $100 on OTC meds last year, my effective Federal tax rate was a hair above 10% so that saved me about $10. Woop dee ding! It's nice to have, but I'm not going to miss it at all. I use the bulk of my flex spend funds for things like my dentist/eye care expenses and the few co-pays I have.

I know those that have allergies can spend a ton on Claritin and the like, but if your allergies are THAT bad you can just get a prescription on your next doctor's visit and you're good to go. Heck I bet you could get the script just by calling, if your allergies are that bad your doc probably already knows about it and won't have a problem just doing it over the phone. Same with other cronic conditions that use a lot of OTC meds, if you have a cronic issue, you're already under a doctor's care. Just have your doc write you a script the next time you see them. Yes it's an extra step but I just don't see how it is that big a deal.

not always the case. Years ago i was able to get allergy meds. Then i was denied because allergy meds were avaibale over the counter. The only reason i was able to get it now is because some over the counter pain relievers cause my liver enzymes to rise. Since i was buying advil cold and sinus meds for sinus plus allergy meds my Dr. said those OTC meds were raising my liver enzymes so i was able to get my RX. Allery meds do add up $$ when you have to pay out of your pocket. Plus i had to buy my dd allergy meds too. After i got her test and she had lots of allergies(her whole back was swallon from the testing) her Dr. said she needed to be on 2 meds. OTC meds for both us us was a lot but like i said there were medical reasons why we were giving the RX. Some may not think its a big deal but it is for those paying $$$. My concern is first the OTC is the first to go then whats next?

 

[WDWorBUST]

My DS is on an insulin pump too...sometimes I think the dollars I spend on his healthcare are the least of my worries

My DS is in college. With the job market being the way it is, I'd been worried sick about what whether he'd be able to find a job with health insurance benefits. I am so relieved to be able to keep him on my policy, if necessary, until he's 26. By then, insurance companies will not be able to deny him benefits or charge him more for his pre-existing condition.

This is one of the few things that I think was a good change with our wonderful "reform".....however they even screwed that up. I'm all for a child being allowed to stay on their parents healthplan if they are truly a dependent. But as of now they will still be eligible even if they don't live at home AND they can even be married. Of course that's just my opinion.....others may disagree.

anyone have american fidielty???If so have you recieved a letter yet? I havent and mine ends in Dec.

I would imagine it's the employers sending the letter.....but I could be wrong.

I will have to check on it to make sure there isn't a reason I should wait....but we have a January 1 renewal and I had just planned on addressing it at our open enrollment sessions. That still gives everyone at least a full month to use up their flex on OTC stuff if they need to. And they will have that information when they are planning on their 2011 amounts.

 

[sookie]

write your congressment and write emails and letters. there is a website around - save my flex plan or something - that can help you.
i have written like 6! i am very unhappy and want it changed asap!