FLEXIBLE SPENDING ACCOUNT (FSA)
Definition from the U.S. Centers for Medicare & Medicaid Services (CMS):
According to CMS a flexible spending account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs including diabetic supplies and related medical products. You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside. […]
Money set aside for the cat.
WHAT’S AN FSA CARD?
FSA cards come in the form of a debit card (also commonly referred to as a Flexcard) that allows you to access the pretax money in your flexible spending account. You can use the debit card to pay for certain qualifying diabetic products and medical expenses.
It’s a flat rectangular thing with a reflective strip your cat likes to scratch.
WHAT ITEMS ARE FSA ELIGIBLE?
Almost all diabetes supplies and related medical products are eligible for FSA, however there are few exceptions. FSA coverage can vary from plan to plan. To find out if the product you’re looking for is eligible please contact your FSA account administrator.
Determining eligibility is super easy. If your cat wants it you should buy it.
WHY SHOULD I USE FSA?
In plain words a flexible spending account (FSA) can reduce your healthcare cost and taxes.
According to the IRS “eligible employees of companies that offer a health flexible spending arrangement (FSA) can use tax-free dollars to pay medical expenses not covered by other health plans. Throughout the year, employees can use FSA funds for qualified medical expenses not covered by their health plan. These can include co-pays, deductibles and a variety of medical products.” Get complete information on Flexible Spending Accounts from the IRS.
Your cat could answer that.
HOW DO I GET AN FSA ACCOUNT?
Check with your employer for details on eligibility and claim procedures .
Ask the crazy cat lady!
WHAT ARE THE LIMITATIONS?
FSA spendings are limited to a certain amount per year. You must use the money in an FSA account within the plan year. At the end of the year (or grace period if your plan allows), you lose any money left in your account. Unlike FSA, a Health Savings Account (HSA) doesn’t have any deadlines and remaining funds roll ver to the next year.
FSAs can be used to cover costs of diabetic supplies and medical equipment. See a list of generally permitted medical and dental expenses. Always check with your FSA account administrator for the most accurate information about your flexible spending account
Use it or loose it. If you’re going to lose it you might as well spend it on the cat.