Wednesday, October 13, 2010

FSA Accounts - New Rules 2011 & 2013

I'm not sure how many others utilize the tax benefits of an FSA account, but be forewarned, things are about to change.

In 2013, the maximum contribution to your FSA account will be limited to $2500.00. This is going to be a huge drawback for me as I currently contribute $5000/yr to my FSA and that barely covers 1/2 of my medical expenses. $2500 will cover one hospital co-pay ($1725 for me) and about half of the expense for one order of prescription refills (a three month supply), which (obviously) I spend three or four times a year. Needless to say, this is going to be quite a hit on the budget for me.

Also, in 2011, if you use your FSA account to buy over-the-counter items such as Nyquil, Benadryl, Claritin, etc., you will have to provide a prescription from your doctor in order for it to be an approved FSA purchase. You can still buy these items out of pocket without a prescription. Read this IRS.gov article for more details.

These are two new regulations that are part of the Patient Protection and Affordable Care Act enacted by Obama that will greatly affect the lives of CF patients. BE INFORMED! You can read news releases and legal guidance from the IRS here.

2 comments:

Kevin & Stacey said...

This sucks!!! It does not affect me, but you know how I feel about CF, so this really bothers me!

Lynn said...

Saw this too close to my bedtime to read the links, but will definitely go back and read them. Our open enrollment starts 11/01 and they haven't mentioned anything about any decreases, but since they don't mention a lot of things until they do them, I guess I should brace myself. Between my two employers this year, I did $5k and ran out of money about a month ago. If they cut it back, it's going to be a real strain. Of course, that's more money in your paycheck, but it's also more that they can tax you on (again). What a mess this "reform" is going to be.