Major Change to FSA/HSA Accounts Starting in 2011

[pansmermaidzlagoon]

No big deal to me. I use my FSA primarily for copays, prescriptions and contacts/eyeglasses...what it was really designed for.

The only time I'll submit for OTC items is if there happens to be funds left at the end of the year, which is rare and normally less than $25.

same here - plus we have a DD in braces!

 

[clutter]

I buy mine at Costco as well. I watch the ads - every few months they have a special for Zyrtec, and the bottles are much larger than the childrens bottles at the regular store. There are two in a pack, and I think they're typically $14? I just bought them recently for $11, I believe with the coupon from their ad.

Costco also has a generic form of Zyrtec that is dirt cheap. And works just as well.

 

[solotraveler]

Well, that is fine unless you have a $3,000 deductible like our family...Or have to meet the $10,000 out of pocket maximum... Oh, and the increased $1200 tax bill on top of that. Yep, $2500 should cover it - not.

The key word there is most.

That said, if you are unable to cover that $3000 deductible or $10000 OOP max, time to look for another insurance policy that better suits your needs.

 

[j's m]

The key word there is most.

That said, if you are unable to cover that $3000 deductible or $10000 OOP max, time to look for another insurance policy that better suits your needs.

That's all well and good to say find another policy, but if you are buying a policy yourself as an individual or small business owner, better coverage and less OPP means HIGHER premiums. That's a fact of life.

 

[dvcgirl]

Well, that is fine unless you have a $3,000 deductible like our family...Or have to meet the $10,000 out of pocket maximum... Oh, and the increased $1200 tax bill on top of that. Yep, $2500 should cover it - not.

I just wanted to say that the FSA is capped at $2,500, the HSA contribution is $6,150 for a family in 2010....

The OTC rule applies to the HSA, but for some of us who are healthy and never touch the fund, it doesn't matter. We pay out of pocket for minor expenses like OTC meds and treat our HSA fund as a sort of "medical 401K"...that we never touch.

High deductible plans and HSAs are going to become increasingly popular with this new bill....so I'm glad that they kept the tax benefits in place.

Overall, I think that there's been a huge overreaction to this bill.

 

[msmayor]

That's all well and good to say find another policy, but if you are buying a policy yourself as an individual or small business owner, better coverage and less OPP means HIGHER premiums. That's a fact of life.

That's a fact of life regardless of where you get your insurance. Even with the choices available through my DH's employer, less out of pocket and more choice of providers = more premium.

Are you really reaching your $10,000 max out of pocket every year? If you have a $3k deductible, then benefits kick in after that; my guess is this is an 80/20 policy where once the deductible is met, you pay only 20% of the bill and insurance pays the rest?

That's really a traditional plan and, in many circles, what is considered the most expensive type of plan.

Are you free to choose any/all your doctors? Do you need referrals for specialist care? Again, if not, that's almost always going to be the more expensive plan available.

 

[solotraveler]

That's all well and good to say find another policy, but if you are buying a policy yourself as an individual or small business owner, better coverage and less OPP means HIGHER premiums. That's a fact of life.

Sure, but life's full of choices. There is really no free lunch when it comes to insurance coverage. It's entirely possible, especially if she's meeting her deductible and OOP max every year, that paying more expensive premiums up front could save money in the long run. If she's honestly paying 10K out of pocket every year, then she would be smart to see if there are other options that work better for her.

That's a fact of life regardless of where you get your insurance. Even with the choices available through my DH's employer, less out of pocket and more choice of providers = more premium.

Are you really reaching your $10,000 max out of pocket every year? If you have a $3k deductible, then benefits kick in after that; my guess is this is an 80/20 policy where once the deductible is met, you pay only 20% of the bill and insurance pays the rest?

That's really a traditional plan and, in many circles, what is considered the most expensive type of plan.

Are you free to choose any/all your doctors? Do you need referrals for specialist care? Again, if not, that's almost always going to be the more expensive plan available.

 

[rparmfamily]

I just wanted to say that the FSA is capped at $2,500, the HSA contribution is $6,150 for a family in 2010....

The OTC rule applies to the HSA, but for some of us who are healthy and never touch the fund, it doesn't matter. We pay out of pocket for minor expenses like OTC meds and treat our HSA fund as a sort of "medical 401K"...that we never touch.

High deductible plans and HSAs are going to become increasingly popular with this new bill....so I'm glad that they kept the tax benefits in place.

Overall, I think that there's been a huge overreaction to this bill.

I agree. I think once some of it starts to trickle down and actually apply to people that some (not most) of the naysayers will think that at least portions of the bill are ok.

 

[kinntj]

I don't have a problem with it.

 

[wdwmaw]

I don't have a problem with it.

We also have no problem with the changes to come. A little OT but the best part for us is DH has a major pre existing condition, so now with this new plan we can plan on retiring early, move to Florida, and work for Disney and we don't have to worry about healthcare.

 

[okeydokey]

I'm so thankful that my son will be able to get insurance coverage on his own once he now longer qualifies to be on mine. He, too has pre-existing conditions and would have been uninsurable.

 

[wdwfan16]

Funny how this all comes out after the bill has been passed..

It is sad how many bought the "only the rich will pay" line. This will hit the middle class big time.

There is much more still hidden in the bill.

 

[maxiesmom]

Overall, I think that there's been a huge overreaction to this bill.

Which is what was intended, don't you think?

I can't see the big deal in not being able to buy over the counter meds with your plan. Unless you buy some massive quantities, you are not saving that much pretax money. Much ado about nothing.

 

[mistysue]

I spent Monday looking through the bill while I was at work. Funny that I have yet to see anybody mention that it includes increasing the lower limit for deductible medical expenses. As of 2011 you can only deduct expenses OVER 10% of your pay. Add that to the raising rates expected in the next couple years (they left a couple years of free time before they start capping rate increases) and how much do you think insurance is going to cost?

My family owns a small business and the least expensive plan we could get that gave reasonable coverage was $1500/month per family. That is $18,000/year. On top of that, DH and I paid close to $7500 in medical expenses last year. If that premium goes on our w2's it is only a matter of time before we flat out get taxed for it. So an additional 10% of taxable income for how many millions of people?

 

[Halbleib1]

Over time I think they will be making changes to this bill. Just have to give it some time and see how it all plays out. It is too soon to say what will and will not be put into effect in 2014. No one really knows for sure how much it will cost them or if it will cost them any more in the end. A lot can happen between now and 2014. Heck for all we know come 2012 we might have a new president that will change it all up again.

 

[Anjelica]

What I love is the 10% tax on tanning

That is the one near term line item that kills me. It is such a blantant grab for money. I just don't get it.....they going to tax people who go to pools, waterparks, beaches, etc? Probably not.

I can't wait till you get penalized for not having a gym membership. Oooooo....I know - the federal government can start "federal" gyms for people who don't have access to gyms....

 

[rparmfamily]

Really? See, a 10% tax on tanning doesn't bother me. Some of the other stuff, yes, but the tanning (as in a tanning place of course LOL) not so much.

 

[bridget]

We always run out of money in our HSA about 6-8 months in... deductibles, dentist visits, eye doctor, plus regular prescriptions. Our HSA doesn't even cover what we have to pay OOP for deductibles. It probably doesn't help that I have had melanoma and go to an eye dr. and dermatologist every 3 months!

 

[Anjelica]

Really? See, a 10% tax on tanning doesn't bother me. Some of the other stuff, yes, but the tanning (as in a tanning place of course LOL) not so much.

Guess that one just really grinds me - why tax indoor tanning salons? I don't get it - while I don't agree with the smoking tax in theory (no I don't smoke) it at least tried to universally effect everyone who purchases cigarettes (and 99% of the time it will be someone who actually smokes). The tanning tax only effects those that get their sun from indoor salons - what about those who sit at the pool or beaches all day long?

To me it was an obvious grab for more money. Kind of like the soda tax and junk food tax they are talking about. The government just needs to remove our brains soon after we are born because apparently they can do all our thinking for us.

 

[bensmama1]

You have GOT to be kidding me. This health care bill is going to be a major hit to my wallet and my lifestyle. Thanks, Obama.

My sentiments exactly!! Oh, he's making change allright....