Why your patients may be losing their health-care FSA funds

According to marketplace.org, an estimated 38 million Americans have health care Flexible Spending Accounts (FSA). FSAs allow patients to set aside pre-tax money to spend on qualifying medical expenses, such as copays, medications, and baby-care supplies. But it's use-it-or-lose it, and an average of 8% of FSA holders "lose it." 

How can patients save money with an FSA?
FSAs offer a "two-fer:" contributors have a pool of money set aside for health-care costs, and they save on taxes. 

For example, someone with a $50,000 annual income and $1,000 per year of qualifying medical expenses can save about $300 on their taxes. So it's like getting $1,000 of medical care for only $700.

But do my patients have FSAs?
Most likely, yes. According to the 2018 Employer Health Benefits Survey from the Kaiser Family Foundation, half of all firms with 25+ employees off er FSAs.  Among companies with 200+ employees, that number climbs to three-quarters. 

What's the right amount to contribute to an FSA?
How much to contribute is an important question because any money that's not used by December 31 (some employers offer a grace period) is lost to contributors. On average, contributors leave behind an average of $172 per year. That's a lot of lip balm!

Nerdwallet, a company specializing on personal financial advice, has an out-of-pocket medical cost calculator to help people determine how much to contribute to their FSA each year. And Forbes.com recommends using your deductible as a guide for contributions — especially considering that 81% of health plans now have deductibles. 

What qualifies for FSA funds?
Many people avoid contributing to an FSA because of the use-it-or-lose-it rule. And many avoid contributing because spending the money can be so darn confusing.

Your patients can reference the Federal Government's website for its own employees, which includes an interactive list of FSA-eligible expenses. They should always check with their FSA administrator to confirm their purchases are eligible.  But they'll probably appreciate the reminder from you. 

FSA quick reference list for providers

Below, we've included an at-a-glance list of some common products that your patients can spend their health care savings on. 

Qualifying medical expenses:

• Athletic Braces & Supports
• Bandages
• Blood Pressure Monitors
• Eye Glass & Lens Accessories
• First Aid Kits
• First Aid Treatments & Supplies
• Home Medical Equipment
• Heating Pads & Wraps
• Hot & Cold Packs
• Lip Balm
• Motion Sickness Aids
• Nasal Spray
• Orthopedic & Surgical Supports
• Shoe Insoles & Inserts
• Sunscreen
• Thermometers
• Vaporizers & Inhalers
• Allergy Medicine
• Anti-Fungal Treatments
• Anti-Itch Treatments
• Aspirin & Baby Aspirin
• Chest Rubs
• Cold Sore Treatments
• Cough Drops & Spray
• Cough, Cold & Flu Medicine
• Ear Drops & Wax Removers
• External Pain Relievers
• Eye Drops
• Feminine Personal Care Treatments
• Hemorrhoidal Treatments
• Laxatives
• Nasal Spray
• Oral Pain Remedies
• Pain Relieving Creams & Pads
• Pain Relievers
• Skin Treatments
• Sleep Aids
• Stomach & Digestive Aids
• Topical Skin Treatments
• Wart Removers

Qualifying OTC drugs (with prescription)

Of course, for most AllWays Health Partners commercial members, many of these are already covered by our OTC benefit. Download our OTC flyer to learn more. 

• Acne Treatments
• Allergy Medicine
• Antacids & Acid Controllers
• Anti-Fungal Treatments
• Anti-Itch Treatments
• Antiparisitic & Lice Treatments
• Aspirin & Baby Aspirin
• Chest Rubs
• Children's Cold & Allergy Medicine
• Children's Fever & Pain Relievers
• Children's Stomach & Digestive Aids
• Cold Sore Treatments
• Corn & Callus Removers
• Cough Drops & Spray
• Cough, Cold & Flu Medicine
• Diaper Rash Cream
• Ear Drops & Wax Removers
• External Pain Relievers
• Eye Drops
• Feminine Personal Care Treatments
• Hemorrhoidal Treatments
• Laxatives
• Nasal Spray
• Nicotine Gum & Patches
• Oral Pain Remedies
• Pain Relieving Creams & Pads
• Pain Relievers
• Skin Treatments
• Sleep Aids
• Stomach & Digestive Aids
• Topical Skin Treatments
• Wart Removers