|  | Healthcare Industry | Health Insurance

Flexible Savings Account Rules

Paying for the cost of health care and related expenses can be very difficult, and the government has recognized the problems many families have in meeting these expenses. That is why companies have created flexible savings accounts, or FSAs, to help their workers put money aside to pay for necessary expenses. The money invested in an FSA is put aside on a pre-tax basis, saving employees money on their taxes and providing an important benefit employers can use to entice the best and most dedicated workers. But since the money in an FSA is treated differently, it is important to follow the rules set forth by the IRS.

  1. Expense Reimbursements

    • It is important for employees who participate in a flexible savings account to get complete information on the reimbursement of allowable expenses. Most employers require that a claim form be completed each time the employee incurs an expense that is reimbursable under the FSA program. Contact your Human Resources department for more information about how to get your FSA to pay for the expenses you have incurred.

    Who Qualifies

    • Employees who participate in an FSA fund, and those who plan to contribute money in the future, need to understand which members of their family qualify under the dependent care reimbursement section of the FSA. According to the rules set forth under the FSA program, qualifying dependents include minor children under the age of 13 and a spouse who is physically or mentally unable to care for themselves.

    Eligible Expenses

    • Employees who participate in a flexible spending account need to understand what expenses are reimbursable under the plan. Medically necessary expenses are likely to be reimbursable under the plan, but it is important to check with the plan administrator for a full list of covered expenses. Things such as drug and alcohol treatment, that may not be covered by your regular health care plan, will generally be reimbursable under the FSA plan. Adaptive equipment deemed to be medically necessary is likely to be reimbursable as well, as are medic alert bracelets and similar devices.

Health Insurance - Related Articles