HSA, FSA and braces...

[shelly3girls]

I keep playing phone tag with my HR rep (who I still plan to talk to no matter what) and I am curious about something. We plan to switch to a high premium plan this year with an HSA. DD11 will be getting braces next year. Someone told me that you can still have an HSA for glasses, contacts and orthodontics even if you have an HSA. Is this true? I hope so b/c otherwise her braces alone will use up almost the full amount we can put into the HSA.

 

[clh2]

We also have a high deductible plan and contribute additional money to the HSA in addition to what my employer contributes.

We are able to use the funds that we contribute for vision and dental related expenses (including orthodontics). Technically - we are supposed to use the employer contributions only for medical. We've kept very detailed records on what is medical vs. vision and dental.

Hope this helps!

 

[Tink415]

Yes, you use Flexible Spending Account $$ for glasses, contacts, dental, but NOT for medical, if you also have a Health Savings Account for medical expenses. Look up publication 969 on the IRS site. Pay for those braces in 2011.

 

[shelly3girls]

Yes, you use Flexible Spending Account $$ for glasses, contacts, dental, but NOT for medical, if you also have a Health Savings Account for medical expenses. Look up publication 969 on the IRS site. Pay for those braces in 2011.

Thanks! Wow, reading that publication is like studying for a final.

 

[clh2]

Too bad OP's HR department is not returning calls.

I would have a couple of concerns about using a FSA for braces while an HSA was also in place and contributions could be used there instead.

The first is FSA have a "use it or lose it rule". Also - WITH MY EMPLOYER - if I want my FSA to cover orthondia - there is a set formula that is followed for reimbursement. They will cover the deposit (in my case 25%), and then - they will take the balance and divide it by the number of months that treatment is expected to take. So - after the deposit - if I still needed to pay 3600, and treatment was supposed to take 24 months, the most I could get reimbursed is $150 per month. So - the lesson here is - just make sure your contributions match the reimbursement plan your employer has.

 

[shelly3girls]

Too bad OP's HR department is not returning calls.

I would have a couple of concerns about using a FSA for braces while an HSA was also in place and contributions could be used there instead.

The first is FSA have a "use it or lose it rule". Also - WITH MY EMPLOYER - if I want my FSA to cover orthondia - there is a set formula that is followed for reimbursement. They will cover the deposit (in my case 25%), and then - they will take the balance and divide it by the number of months that treatment is expected to take. So - after the deposit - if I still needed to pay 3600, and treatment was supposed to take 24 months, the most I could get reimbursed is $150 per month. So - the lesson here is - just make sure your contributions match the reimbursement plan your employer has.

Thanks for the info. HR did call me today and our FSA works the same as yours. At this point we will max out the HSA and put money in the FSA for the braces. I will have to underfund the FSA b/c we haven't gotten an estimate on the braces but we know they are going on in February.