I’m thinking of signing up for my employer-offered FSA if I could find a doctor willing to sign a letter saying it’s an eligible expense as defined by the plan. This would greatly reduce the cost of next year’s $3,000 expected treatments (no state and federal tax, ~35%).
Anyone have any thoughts?
Here’s the expense guide:
For those who don’t know what FSA means, it stands for Flexible Spending Accounts for medical expenses. Money is withheld from the paycheck and is not taxed. One must use this tax-free money to pay for medical expenses and there are some FSA’s for dependent care as well. Each company defines the limits one can withhold. It’s a use it or lose it situation, meaning the money withheld has to be used within a year’s time or you lose the remaining money. I think congress is looking into extending that deadline, though. I described that crudely, so if there is anyone who wants correct me or add to this information, please come forward.
I have had clients who used their FSA’s from Abercrombie and Fitch, which is headquartered here in Columbus. A receipt for electrolysis was submitted and paid for with no questions asked from the clients FSA account, then after 5 times or so, it was questioned. The employee was denied after that. He did not have a doctors prescription and that might be the key to releasing the money from an FSA account??? He stopped having the treatments. Another employee tried using her money for electrolysis services, but by then they were familiar with this scene and turned her down.
Another client, a nurse, successfully used her FSA account from her place of business with no doctor letter, so she told me.
I don’t have time to read the document you so kindly posted right now. I think it is worth persuing with your doctors help. It’s your money anyway with the perk of no taxation, but if there are specific guidelines for using this money, then those guidlines have to adhered to as laid out. My understanding is that FSA’s ARE NOT MEANT TO COVER COSMETIC PROCEEDURES.
In my opinion, electrolysis is not always needed for cosmetic reasons only. There is much anguish and psychological trauma for cases where hair is in all the wrong places in copius amounts. Women with beards is an example.
There are some situations where people will not elect to do certain proceedures because someone else is not paying the bill for them. These people could well afford it, too. I have had several men and women ask if insurance pays for electrolysis. When they hear the words, “not likely” they are gone even if I guesstimate that to remove the hair from their upper lip will be less than $500 or their shoulder hair could be between $1000 and $1,500 spread out over a year or so. I watch them get into their luxery car and wonder why they expect someone else to pay for their whispy lip hairs, but not their monthly car payments?
FSA is a nice buffer to have, but there are certain guidelines that have to be followed for good reasons. It’s worth exploring and if they need the kick of a doctor’s letter, then try that route, that is, if a doctor is willing to go to bat for you over hair removal.
Dee
I will just add that I have had quite a few clients use their FSA’s to pay for treatments.
How easy was it for them to do this? Did a doctor have to intervene and write a letter first? Any other details that you are aware of, James?
Every plan has its own rules.
Some plans will pay directly, others pay the client a reimbursement. Some require a prescription first, others will accept prior treatment for something that has excess hair as a side effect, or previous prescriptions for things that have excess hair as a side effect.
Just remember that this is YOUR MONEY. They have the incentive to cheat you out of using this money, as any that you don’t spend is theirs to keep.
For many, it is a totally painless process, for others, they must fight for their right to spend their money in the way they choose.