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This is the first time I'm going medical FSA and I'm not sure how much to put in. I know the limit is $2500. I am having a baby next March and my insurance deductible for that is $1000, so I know I should put in at least that. Aside from that, I don't know what to do. It seems that I can use it to pay for many things, but I honestly don't know what will come up next year. Also, as far as I can tell, once the baby arrives in March, I will be able to change my deductions if I need to? Is there any guidance for this? Thank you!
It depends on how much you expect to use. We use our $2640 or whatever in a couple months but that is family of six.
I am 99.99% sure you will need all of it since you'll be going to doctors for other stuff and (I think) OTC can be charged to FSA (it used to be, probably still is). So at the end of the year if you have any left you can stock up on OTC or get another set of glasses or whatever...someone can chime in on the OTC allowability and strategy of not losing at the end of the year but my gut feeling is you'll use it all up fast.
Last edited by Cheektowaga_Chester; 12-04-2013 at 08:05 AM..
The OTC type stuff doesn't add up that fast so I would be cautious. An infant goes to the doctor frequently in the first year but your insurance likely has a zero co-pay for all of those well visits
Part of it depends on what expenses are allowed to be reimbursed. I have an HSA and an FSA and my FSA is only for vision and dental. In prior years, my FSA was for co-pays, out of pocket medical expenses, scrips, OTC stuff.
I suspect with a new baby you could contribute the max and burn through that well before the end of the year.
It depends on how much you expect to use. We use our $2640 or whatever in a couple months but that is family of six.
I am 99.99% sure you will need all of it since you'll be going to doctors for other stuff and (I think) OTC can be charged to FSA (it used to be, probably still is). So at the end of the year if you have any left you can stock up on OTC or get another set of glasses or whatever...someone can chime in on the OTC allowability and strategy of not losing at the end of the year but my gut feeling is you'll use it all up fast.
Actually, now OTC items can only be submitted for FSA reimbursement if you have a prescription for the item. (Previously, you could send in a receipt for these items without medical direction, but that changed as part of the Affordable Care Act/Obamacare. The Affordable Care Act/Obamacare also limited FSAs to $2500 per year.)
Katestar, I would definitely review the insurance policy carefully. Make sure that the deductible for maternity care is $1000 (some policies have lower or even $0 deductibles for maternity care). Second, check out the co-payments/deductibles for pediatric well-child visits, immunizations, and sick-child visits. Many insurance policies will have $0 copay/deductible for well-child visits and immunizations, but this may not be universal. Count on needing to take in the baby for sick appointments at least 2-3 times in the first year. If you have well-child copays, check with the future pediatrician to see the intervals for those.
Also, do you (and your husband, if you're married) take any regular medications? Do you have any other regular medical appointments? Do you go to the dentist or wear glasses/contacts? These are also all things that can be reimbursed via a FSA.
It depends on how much you expect to use. We use our $2640 or whatever in a couple months but that is family of six.
I am 99.99% sure you will need all of it since you'll be going to doctors for other stuff and (I think) OTC can be charged to FSA (it used to be, probably still is). So at the end of the year if you have any left you can stock up on OTC or get another set of glasses or whatever...someone can chime in on the OTC allowability and strategy of not losing at the end of the year but my gut feeling is you'll use it all up fast.
$2500 is the limit now and the OTC stuff is only allowed if you have a prescription from your dr.
Katestar--what it your out of pocket max? If your deductible is only $1000 I wouldn't take much more than that for medical but if you wear glasses/contact, etc. allow for those costs. You want to error on the conservative side. Your baby's well checks through the year are covered at 100% (unless you have a grandfathered plan). Your initial follow up visit may be covered under your delivery costs, ask your dr about that. Do you have co-pays for office visits? If so, allow maybe $100 for those or so. This is why I like the Health Savings Accounts so much more!!! You don't have to do the guess work.
One other thing I'll add. I started a new job this past April and my 2013 FSA contribution was un-prorated to around $1400 or something like that. BUT my PPO deductibles were not prorated. Bummer.
Thank you for the replies. My deductible for delivery is $1000 and out of pocket max for the year is $1000, so we'll hit that right away. I will have to check about well visits. My partner is not on my insurance and aside from this pregnancy, I only go to the doctor once a year for my physical (knock on wood).
One more thing I forgot to add. If it is a decent distance from your home to the OB/GYN office, the hospital, and/or the pediatrician's office, you may also want to calculate mileage. You can claim reimbursement from an FSA for transportation to and from medical appointments. For 2013, that rate is $.24 per mile. That might not sound like much, but if you have a 20 mile round trip, that's $4.80 per visit. And you'll be going much more often in the new year after you hit 30 weeks.
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