According to the Bureau of Labor Statistics, roughly 43% of employees at private companies have access to Flexible Spending Accounts (FSAs) for health care and/or dependent care. But these accounts come with a catch – you must use the money by the end of the plan year, or risk losing what you don’t spend.
Because of this, an estimated $400 million is forfeited each year from unused FSA funds. For many with FSAs, this hasn’t been a concern over the last two years, as the COVID-19 Relief Bill extended the deadline to use funds from 2020 & 2021. This bill offered patients until December 31, 2022 to spend the remaining funds in their accounts.
Yet as the end of 2022 gets closer, patients may be left in a position where they have far more available to spend than in previous years.
Knowing how these funds can be used – and how long you have to spend them – is essential to avoid leaving money on the table!
Understanding Your FSA Terms
Different FSA plans and structures offer different rules on when/how the funds need to be spent, so we recommend checking your exact plan details.
In most cases, FSAs must be spent by a deadline – either December 31 or March 15 – with a few FSA plans offering rollover options into the next year.
Plans may include any of these FSA options:
1. Run-Out Period
Once the term year ends, patients are given time to claim any last-minute expenses (or expenses from earlier in the year, if they’d forgotten to submit the claim).
2. Grace Period
Any extra time beyond the term year that patients are given to incur new expenses, extending the overall length of time that FSA funds can be used.
3. Run-Out Period with Carryover
An amount (up to the IRS’s current limit) that carries over into the following year, with a run-out period applied to those funds.
Varicose Vein Treatment is Eligible for FSA Reimbursement
If you have an FSA balance to spend before the end of the year, there’s good news! Varicose veins with a medical indication may be eligible for FSA reimbursement. That includes consultations, compression stockings, procedures and follow-up appointments intended for treating varicose veins.
If you have been experiencing symptoms of varicose veins and are interested in learning more about treatment options, contact us to schedule a consultation today.
See additional options for FSA spending on FSAStore.com.