A Flexible Spending Account is a special account you put money into that you use to pay for certain out-of-pocket health care costs. For many by this time of the year your deductible (the amount you have to pay out-of-pocket before health insurance starts to pick up the bills) will reset at the start of the year. So if you’ve already satisfied your deductible, now is the time to get in those last-minute treatments, especially if you’re in need of care that is costly. Your insurance will generally pick up the tab as long as care is provided before the end of the year.
At the end of the plan year or grace period, you lose any money left over in your FSA. So it’s important to plan carefully and not put more money in your FSA than you think you’ll spend within a year on things like copayments, coinsurance, drugs, and other allowed health care costs including vision care.
You can pay for eye exams and prescription glasses and contacts with your FSA. But did you realize that prescription sunglasses are also covered? You can also buy reading glasses with your FSA. You can receive a Lasik procedure with FSA dollars, since Lasik is considered cosmetic it is not covered by insurance.
If you participate in a flex spending account through your employer, time maybe running out. Some plans require that you use it or lose it by December 31st.