Saving Insurance Receipts? DisneySteve?

[CajunDixie]

I've tried the search function and of course its not working right now. Awhile back someone posted about saving all their medical receipts then turning them all in at once to their "insurance" account to be reimbursed then used that money for WDW. This was through an account that an employee sets up in place of insurance. Seems like maybe it was DisneySteve that used this type of account but I can't remember for sure.

What I'd like to know is exactly how it works. My DH works for a very small company and our insurance payments will double in February. His boss is thinking of switching to this medical saving fund thing and is having a meeting for questions tomorrow. Can anyone let me know some questions to ask or let me know about any problems you've had with this type of fund. In the 8 years he has worked there we've only had about $150 in medical expenses per year and our contacts/glasses were never included anyway.

Thanks for any help you can give.

 

[disneysteve]

Nope, wasn't me. Sorry.

Steve

 

[janette]

Are you talking about a medical spending account? They are great because you can put money in pre-tax and then get rereimbursed for medical expenses. Co-pays, glasses & dental are part of what would go there. You can also extract it as you spend it not when you contribute.

The only downside is that it is a use or lose it type account. If you put too much in and don't have that much in medical spending that year you can't change the contribution. The trick is to get as close as you can to your actual expenses. Some things such as ortho or glasses are easy to plan but others like Dr visits and prescriptions are harder.

I've heard but not verified that the plan is being expanding to include non-prescription medical costs also.

 

[Cheshire Figment]

There is a payroll reduction plan, sometimes referred to as a Medical Savings Account. Usually it is a supplement to medical insurance. It is only available if the employer has set up the plan and is usually handled by an outside company.

You determine how much money you want to contribute. There is an annual maximum contribution which is set by either the employer or plan administrator. The amount is excluded from your income for Income Tax, Social Security and Medicare Tax purposes.

Money is taken out equally each pay period for the entire year. The amount cannot be changed during the year. The only way to stop the deduction is to leave the job.

You submit documentation to the plan administator to cover any out-of-pocket medical or dental expenses. This would normally be any co-pays, deductibles, or charges not covered. This includes both prescription and over-the-counter legal medicines. You are then reimbursed for these payments.

You may only claim reimbursement for goods and services provided during a particular calendar year. Normally you have about a month or two after the start of a new year to get your receipts, etc., in to the plan administrator.

If you do not spend or claim the full amount withheld from your pay, you forfeit any unreimbursed money. One extra upside is with most of these plans you can spend and get reimbursed the full amount prior to the end of the year; if you leave the company afte the reimbursement but before the full amount has been deducted from your pay the company or plan administrator will absorb the loss.

There are other FSAs available, to cover costs of child care, parking, or public transportation commuting. The main difference for these is you cannot be reimbursed until after you have paid in the amount.

 

[CajunDixie]

Thanks for all the information. Sent a list of questions with DH to his meeting. Hopefully this plan will save us money.