Today, there are a variety of options that adults and families can use to subsidize their insurance options and create a cushion that will allow them to be better prepared for an unexpected medical issue. Flexible Spending Accounts (FSAs) and Health Spending Accounts (HSAs) are both excellent choices to help prevent catastrophic medical costs.
FSAs and HSAs allow people to set aside money in a special tax-free account that can be used to pay for certain out-of-pocket expenses. The current yearly limit is $2750. If you are married then your spouse is also permitted to set aside the same amount. Those contributions are then available for covering costs that are unexpected or can easily build up. For example, most doctors’ offices have a co-pay that must be covered by the patient. Money from the FSA or HSA accounts can be used in this instance.
The advantage is no taxes are required to be paid on this money. There are stipulations to accessing the account. It is advisable to work with an insurance or FSA expert to ensure the money is used correctly and in a timely fashion. In most cases, the money that is accrued in an FSA account for the year must be used within that calendar year or it is lost.
FSAs can be used to meet a variety of optometry needs. For instance, many will subsidize the payment of standard eye exams. This includes a standard visual acuity exam as well as to discern if there are vision diseases such as glaucoma.
Many types of vision surgery are also acceptable uses of FSA funds. Such issues as corrective vision surgery or surgery for an eye injury will likely qualify for FSA or HSA support. Payments for eyewear including frames, contact lenses and additional accessories may be paid for with your FSA or HSA account too. Finally, even such seemingly minor products as eye drops that you may need to support your eye and vision health are eligible to be paid by health spending accounts.
To learn more about how to use your spending accounts correctly contact the experts at Island Eyecare.