FSA Flexible Spending Preps

FSA Flexible Spending Accounts & Prepping

Just a reminder, if you have a health flexible spending account (FSA) with money left in it, you only have a few weeks to spend it… for those of us who actually have a FSA that is.

FSA’s can be a nice tool in your prepping toolbox because any unused funds you have left at the end of the year can be used for stocking up on critically important prepping items.

Before we give examples, let’s first take a look at FSA’s in general.

What is an FSA?

FSA’s are, according to the entry on Wikipedia (which does a good job of explaining them) one of a number of tax-advantaged financial accounts, resulting in payroll tax savings. Before the Patient Protection and Affordable Care Act, one significant disadvantage to using an FSA was that funds not used by the end of the plan year were forfeited to the employer, known as the “use it or lose it” rule. Under the terms of the Affordable Care Act, a plan may permit an employee to carry over up to $500 into the following year without losing the funds.

Not all employers offer an FSA, which is a shame because it’s a great benefit for all employees (including upper management) and it costs little to administer. At the place where Salty works, they use an outside administrator who visits each location once a year to make any necessary adjustments in the plan and answer any questions. 

Let’s go back to borrowing for Wiki for a second: “The most common type of flexible spending account, the medical expense FSA (also medical FSA or health FSA), is similar to a health savings account (HSA) or a health reimbursement account (HRA). However, while HSAs and HRAs are almost exclusively used as components of a consumer-driven health care plan, medical FSAs are commonly offered with more traditional health plans as well. In addition, funds in an HSA are not lost when the plan year is over, unlike funds in an FSA. Paper forms or an FSA debit card, also known as a Flexcard, may be used to access the account funds.”

Salty loves his FSA debit card (called the Benny Card in his case).

Becca spills the beans on what’s what with FSA’s

Here are some important things that I always like to point out.

• While the money is collected from your paycheck a little at a time, the full amount is generally available on Jan 1, meaning if someone has a tooth hurting them or other medical emergency, Jan 1, the entire amount that they have elected to set aside is available. Sometimes this is enough to convince people to sign up for them if their benefit enrollment is still open.
• If you leave your job for whatever reason, mid year, you do not have to pay back money that has not yet been taken from your check.
• If you start another job mid year and are offered another FSA, you can literally double the amount of money you have to spend on health related expenses by maxing our both FSA’s. That could be $5000+ and would cover a major expense like dental work someone has been putting off.
• You can use it at chiropractic, mental health, even places your insurance won’t cover (verify with your FSA company what you are eligible to use for) like types of mental health therapists that insurance doesn’t cover or that don’t accept insurance.
• You can use them for home birth. This is an expense that a lot of people can’t make and they want a home birth but can’t afford the $2500-3000. Put it on the FSA.
• The rollover and 90 day grace period, it’s usually either/or and up to the employer so check to see which one your employer does…

One really good option (and what makes this prep related) is you can go to websites like fsastore.com and it tells you what you can use it on. Salty’s Note: This is not an affiliate link, we have no connection with them or any other store here at 3BY.

So What Is Available, Becca?

There is beyond a ton of stuff available: tourniquets, quik clot , wound closures, BandAids, gauze, pre-made first aid kits, you name it. They carry the adventure first aid kits which range from $20-1000 and come with various levels of supplies.

Also: Breast pumps, stethoscopes, baby monitors (the kind you put on a newborn to alert you if they stop breathing), even AED’s are covered. And I’m so itching to blow the rest of ours on an automated external defibrillator (AED)! Salty’s Note: I want an AED too, very much.

There is also a ton of stuff covered like some travel and lodging expenses.

Over the counter medications are FSA eligible with an prescription, so if someone’s doctor is saying “take Ibuprofen 4x a day for your arthritis” ….ask them to write it as an R/X and then they can buy over the counter ibuprofen using the FSA card.

Time Sensitive