During annual enrollment this year, you may have noticed some employees reducing the amount of their Flexible Spending Accounts (FSAs) for 2012. Maybe their anticipated expenses really will decrease next year, or they didn’t actually need as much as they thought they would this year. A new law, which went into effect this year, disallows over-the-counter expenses to be claimed without a doctor’s prescription, which has proved tricky for some consumers to manage.
Or, perhaps they’re overlooking some expenses incurred in 2011, which may mean they’re underestimating their 2012 needs.
As the year winds down, remind employees that if they have funds sitting in their FSA account, they need to spend it or lose it. Most plans allow a few months to submit claims, but expenses must be incurred this calendar year. Make sure you communicate to employees what your company’s policy is regarding submission dates.
In the weeks remaining, encourage employees to do the following to make sure they get the most out of their FSAs:
- Be a receipt sleuth. Dig through old receipts to make sure you’ve claimed all qualifying expenses. If you find receipts for a pain reliever and ankle bandaging in conjunction with a sprained ankle, or a cough medicine at approximately the same time you had the flu, see if you can get your doctor’s authorization to submit them. To stay in your doctor’s good graces and avoid overwhelming the office staff, try to batch and submit requests all at once rather than trickling them as you find them. Remember, you may have a few months’ grace period to submit them as long as the expenses were incurred this year.
- Stock up. If you have disposable contact lenses, order refills. Usually you don’t need to visit your eye doctor if the prescription is up to date. If your prescription should change before you use unopened boxes, you can often exchange them. If you still have funds sitting there, consider purchasing another pair of eyeglasses, or prescription sunglasses, on any current prescriptions.
- Plan ahead. See if you can pay ahead on a procedure that is scheduled for next year, or on recurring expenses such as orthodontia.
- Schedule routine appointments. If your child is due for immunizations or a dental checkup soon, or if you haven’t had your flu shots, get them taken care of during the holiday break from school.
- Get a jump start on your New Year’s resolution. With a doctor’s recommendation, many smoking cessation and weight loss programs are eligible for reimbursement.
- Calculate mileage. Gas and transportation fees to and from eligible medical, dental and vision appointments can be reimbursed at 19 cents per mile, as are visits to the pharmacy to pick up medications.
