What Can You Buy With a Flexible Spending Account?

A flexible spending account is a tool that is offered by some employers as a way for employees to use tax-advantaged money to pay for medical expenses. When your employer offers one of these accounts, you have to use all of the money in your account by the end of the year to avoid losing it.

Flexible Spending Accounts

• You can choose to contribute money to your flexible spending account on a pre-tax basis. The money you want to contribute is taken out of your paycheck each pay period and deposited into the account. Then you can use the money with a debit card or a checkbook and spend it on qualified medical expenses. In some cases, you can pay for expenses out of your own pocket and then be reimbursed with funds from the flexible spending account.

Expenses Not Covered by Insurance

• One of the primary uses of the flexible spending account is to use the money to pay for expenses that are not covered by your insurance plan. For example, if you go to the doctor and you have to pay a $50 co-pay, you can use your flexible spending account to pay for this co-pay. You can also use it to pay for your deductible or co-insurance percentage that is not covered by your insurance company.

Prescription Medication

• You can also use your flexible spending account to pay for prescription drugs instead of having to use money out of your own pocket. In the past, you could use the flexible spending account to pay for over-the-counter drugs. As of 2011, this benefit is no longer available. You must have a prescription unless you are buying insulin.

Other Treatments

• With a flexible spending account, you can use the money to pay for expenses for care that is not covered by your insurance company, such as dental, vision or chiropractic treatment.