Consumer Driven Healthcare
Put money in a healthcare spending account
Even if you don't enroll in a high-deductible plan, you may have the opportunity to put money in a healthcare spending account. Here's some information about the most popular type of healthcare spending account, the Flexible Spending Account.
Flexible Spending Account (FSA)
A healthcare FSA is a great way to reduce your costs and make budgeting easier. When you set up an FSA, your employer takes money out of your paycheck before taxes. Then you draw on the funds during the plan year to pay for qualified expenses. Make sure to set aside only as much as you'll use - with an FSA, you typically can use the money only for expenses during the current plan year. The FSA grace period, which allows extended access to FSA funds, is available to some employers. Check your Benefits Plan Document to confirm if you have the FSA grace period.
Your employer determines what types of expenses are qualified, within guidelines defined by the IRS. Most employers' plans cover medical and dental, prescription drugs, and vision services. However, your company may not include all of these categories. You can't use the money for experimental treatments, cosmetic procedures, or insurance premiums.
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