No more OTC savings with HSA, FSA

[stuckincincy]

It's inexorable...

 

http://www.wcpo.com/content/news/localshow...9iW7WosD_w.cspx

[GG]

It's inexorable...

 

http://www.wcpo.com/content/news/localshow...9iW7WosD_w.cspx

 

Makes sense.

 

Never understood why there needed to be a tax break for OTC medication.

 

I self medicate with a glass (or two of ...) where's my tax break?

[IDBillzFan]

The good news is that families making less than $250K won't see their taxes increase one dime.

 

So that's something.

[Magox]

You mean you won't be able to buy mirilax with your HSA card any longer?

[KD in CA]

The good news is that families making less than $250K won't see their taxes increase one dime.

 

So that's something.

 

 

[Fezmid]

Makes sense.

 

Never understood why there needed to be a tax break for OTC medication.

 

I self medicate with a glass (or two of ...) where's my tax break?

Why does it make sense...? The Flex Spending Accounts are to pay for medical expenses... As the article says, you can get the break for getting a prescription allergy pill, but not OTA? How does that make sense?

[GG]

Why does it make sense...? The Flex Spending Accounts are to pay for medical expenses... As the article says, you can get the break for getting a prescription allergy pill, but not OTA? How does that make sense?

 

A goal of any sensible tax policy is to earn revenue for least collection cost or if it's a tax credit, direct it in a way that would drive consumer behavior. Tough to argue that you need to incentivize people to buy $3 generic aspirin.

[Fezmid]

A goal of any sensible tax policy is to earn revenue for least collection cost or if it's a tax credit, direct it in a way that would drive consumer behavior. Tough to argue that you need to incentivize people to buy $3 generic aspirin.

I've always wondered what happens if you don't spend all of your FSA money. I know it goes away if you don't spend it by 12/31 -- but where does the money go?

 

I guess I always assumed that the government gets the money, but maybe it all goes to the FSA processing company?

 

Anyone know?

 

That said, I know I've spent more money in December of a year in order to use up all of my Flex spending money. One year my wife ended up buying a $400 pair of sun glasses, just because we had so much money in our account (thought we were going to have a major medical expense that didn't transpire). That's money we wouldn't have normally spent... FWIW, anyway.

[KD in CA]

I've always wondered what happens if you don't spend all of your FSA money. I know it goes away if you don't spend it by 12/31 -- but where does the money go?

 

I guess I always assumed that the government gets the money, but maybe it all goes to the FSA processing company?

 

Anyone know?

 

It goes to the plan sponsor, i.e., your employer.

[Fezmid]

It goes to the plan sponsor, i.e., your employer.

 

So how does the company that runs the plan make any money in the deal....?

[GG]

So how does the company that runs the plan make any money in the deal....?

 

I believe that it is all rolled into the premium that the employer pays the plan sponsor. Usually HSA is administered by the same company that handles your full medical plan.

[KD in CA]

I believe that it is all rolled into the premium that the employer pays the plan sponsor. Usually HSA is administered by the same company that handles your full medical plan.

 

Sometimes yes, but not necessarily. To answer Fez's question, the employer pays a fee to the company that administers the plan.

[MarkAF43]

Sometimes yes, but not necessarily. To answer Fez's question, the employer pays a fee to the company that administers the plan.

 

 

Exactly, I work for United Healthcare and I deal with FSA's.... if you don't use all of your money it gets returned to your employer and they can throw a party or whatever they want with it, usually it just gets rolled back into their administrative costs.

 

In regards to the OTC stuff, it can get pretty ridiculous the stuff that people try to claim and purchase..... even though its not OTC people constantly try to get reimbursed for viagara or cialis. You being able to get it up isn't a medical condition that HAS to be treated, or also for rogaine... not medically necessary for you to have a full head of hair.

 

It started out as a good program but it has now turned into a giant mess of people trying to push the system and see how far they can take it....